The crisis that has caused the outbreak of the new coronavirus has already left its mark on the world economy. Now, some experts warn that it could also lead to shortages of certain drugs. Pharmaceutical companies purchase many of the active ingredients with which they are manufactured in China and India , so the production stoppages and export blockages that have occurred in recent weeks could significantly limit remittances.
The Indian government, for example, has restricted sales to other countries of 26 of these active ingredients – one of the reasons for this decision is that about 70% of the pharmaceutical ingredients received by its industry come from China. The objective, according to the authorities, is to protect against a possible shortage of drugs. One of those affected is paracetamol.
The initiative has huge implications, as India produces 26% of generic drugs in Europe and 24% of those in the United States. In fact, in a letter sent to the European Medicines Agency, the employer association that brings together the main generic pharmaceutical firms of the Old Continent, Medicines for Europe (MFE), indicates that, if it is prolonged, this situation will have a significant impact on supplies. In this letter, MFE points out that at present the risk is limited, as companies work on margin and some have made an additional stockpile for the celebration of the New Year in China. However, if a deficiency of active principles finally occurs, this could affect its price, which would increase. “This would have a collateral effect on the cost of pharmaceutical production goods worldwide,” says MFE.
No incidents in Spain
In our country, the heads of the Spanish Association of Generic Medicines (AESEG) assure that at the moment there have been no incidents derived from the supply and that the companies are in contact with the regulatory entities and are very committed to the situation. For its part, the European Federation of the Innovative Pharmaceutical Industry (Efpia) highlights that its associates were working to avoid possible shortages. Thus, AbbVie, Bayer, Boehringer Ingelheim, Roche and Genentech, GSK, Janssen and Sanofi have made financial and drug donations that could potentially be effective against the coronavirus.
A study by the risk rating agency Moody’s, which analyzes the impact of this crisis on the pharmaceutical industry, shows that, although this is being more significant in China, there will be consequences worldwide. The market in that country is key for pharmaceutical companies, so the economic slowdown resulting from this scenario will have an impact on the income statement. Another sector that depends on the Asian giant is that of medical devices, since the chips they use are usually produced in China. Moody’s experts say that if the outbreak is not contained quickly, “a shortage of such items could cause disruptions in the supply chain just as demand begins to increase.”
Masks and disinfectant gels under control
France has been one of the first countries to adopt measures to ensure the supply of hydro-alcoholic disinfectant masks and gels. Thus, the French Government has set by decree the price of the latter – whose demand has skyrocketed since the appearance of the new coronavirus – in order to avoid an escalation of it and has promoted a legal initiative that allows the authorities to requisition the aforementioned masks and reserve them to be used only by the sick and health personnel. He has not been the only one to act in this way. The German Government has announced the blocking of exports of various health products, including the aforementioned masks, but also gloves, protective suits and other materials that it considers necessary to prevent the spread of the coronavirus through its territory, especially in medical centers.
By Marta Riesgo
