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As Pharmaceutical Supply Chain Goes Global, Threat of Counterfeiting, Intellectual Property Theft and Contamination Rises, Finds New Report; New Supply Chain Management Strategies Needed
Date:10/27/2010

NEW YORK, Oct. 27 /PRNewswire/ -- Global pharmaceutical outsourcing has become increasingly prevalent, but is creating a complex and risky supply chain environment that has pharmaceutical and life sciences executives on high alert, according to a major study co-sponsored by PwC US and published today by Axendia, Inc., a life science and healthcare analyst firm.  In the report, 50 percent of pharmaceutical and life sciences executives surveyed said they see raw materials sourced outside of the U.S. as the greatest vulnerability to the supply chain, and 61 percent view contaminated or nonconforming raw materials as the top threat in the next five years.

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According to the report, titled Achieving Global Supply Chain Visibility, Control & Collaboration in Life Sciences: Business Imperative, Regulatory Necessity, the emerging economies of China, India, Mexico and Brazil are becoming the most attractive places in which to sell medicines. In the drive to lower costs, these countries also are playing a more prominent role in the manufacturing and sourcing process. Yet, outsourcing drug development to manufacturers in developing nations carries significant operational risks.  Moreover, it is more difficult to manufacture and distribute biologics, which are more sensitive to the elements, than chemical entities.  

Against this backdrop, Axendia's survey of 112 industry executives from pharmaceuticals, medical devices, and biotechnology companies around the globe found:

  • Ninety-four percent said global product sales outside of the U.S. will be increasing in the next few years, while 78 percent sai
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SOURCE PwC
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