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Sanofi: Europe to rely less on India and China for API | Anzen Exports

March 13, 2020by Anzen_Exports0

European bulk drug supply

Big pharma takes stock of coronavirus impact on drug supply chain.

There is another Coronavirus update; however, this time it is not from China, but from a big API manufacturing company in Europe.

While China desperately tries to restrain the impact of Covid-19 on its economy, the western world looks for ways to avoid drug shortages in future due to similar threats. Sanofi announced they will spinoff six API units in Europe to support the supply chain of bulk drugs.

The FDA has identified about 20 drugs that solely source their active pharmaceutical ingredients or finished forms from China (FDA). In the wake of the Coronavirus threat, Sanofi aims to expand their API market, which Chinese and Indian companies presently dominate.

Sanofi’s Expansion Plans

French drug maker Sanofi announced it plans to create six API production spinoff sites in Europe into a standalone drug company to avoid similar shortages in bulk drug supply from China in the future. The new European drug company will produce and market active pharmaceutical ingredients (APIs) to third parties, worldwide.

According to the Sanofi CEO Paul Hudson, in order to counter threats to the pharmaceutical supply chain “the (API) industry needs to be able to make active pharmaceutical ingredients in Europe. And if you’re going to do it, let’s do it properly,” (Pharma Compass).

The new European firm, which does not have a name yet, will be based in France and combine Sanofi’s API commercial and developments arms with the six production sites to serve 600 customers outside Sanofi. The new company is projected to be the world’s second largest API firm with 3,100 employees and expected sales of €1 billion by 2022 (Sanofi Press Release).

The 6 European active pharmaceutical ingredient (API) production sites are located in Brindisi (Italy), Frankfurt (Germany), Haverhill (UK), St Aubin les Elbeuf (France), Újpest (Hungary) and Vertolaye (France).

Chinese economic slowdown

In business vs the recent outbreak, the coronavirus is winning (Fortune).

Economists expect China’s Q1 GDP growth to be clobbered by the coronavirus outbreak. However they expect the slowdown will be short-lived if the outbreak is contained. It is expected to slump to 4.5% from 6% in the previous quarter (Reuters).

Coronavirus update

The novel coronavirus has now infected over 135,809 people across the world (with over 80,000 cases in China alone) and killed more than 4,990 (worldometer). Tedros Adhanom, the current WHO Director-General said in Geneva, “The key message that should give all countries hope, courage and confidence is that this virus can be contained, indeed there are many countries that have done exactly that.” (Pharma Compass)

References:

https://www.sanofi.com/en/media-room/press-releases/2020/2020-02-24-16-03-59
https://www.pharmacompass.com/radio-compass-blog/world-takes-stock-of-covid-19-impact-on-drug-supply-chain-sanofi-to-create-major-european-api-firm
https://in.reuters.com/article/china-health-economy-poll/chinese-economy-clobbered-by-coronavirus-but-set-to-recover-soon-reuters-poll-idINKBN20807K
https://www.worldometers.info/coronavirus/
https://fortune.com/2020/02/13/coronavirus-business-impact-supply-chains/
https://www.fda.gov/news-events/press-announcements/coronavirus-covid-19-supply-chain-update

Disclaimer :

Anzen Exports blog posts are based just on our research from cited websites. To be best informed, we advise you to consult your doctor about an ingredient or medicine prior to taking it.


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