Yuliyana Manolova, director Business Development Contract Manufacturing at Acino, explores the challenges generics manufacturing in Europe faces, and the actions pharma companies must take to better navigate the current market environment.
Key insights:
- Europe is witnessing an unprecedented call for energy rationing, which has the potential to complicate and harm the generic pricing.
- The rising material and utility costs call for an immediate conversation on adjusting the market ceiling prices for less expensive and extensively regulated generic products.
- There is an obvious need for proofing the pharma supply chain by enacting legislation to provide financial assistance to manufacturers and healthcare systems in the event of pandemic or war.
The global pharmaceutical generics market is currently going through a very difficult time as a result of the pandemic and the war in Ukraine. Pharmaceutical companies are trying to find a way to reduce supply chain dependencies and diversify risks, against the backdrop of the highest industry inflation in many years. The European Union Producer Price index indicates a clear pattern of rapidly rising manufacturing costs. The prices for certain APIs, excipients and packaging materials went up by multiples, signalling the need for immediate discussions amongst stakeholders in the pharmaceutical value chain to ensure product supply continuity.