{"id":100560,"date":"2024-05-08T16:44:06","date_gmt":"2024-05-08T14:44:06","guid":{"rendered":"https:\/\/www.KGM Strategy.com\/?p=100560"},"modified":"2025-02-17T14:33:00","modified_gmt":"2025-02-17T13:33:00","slug":"strengthening-pharmaceutical-supply-chain-resilience","status":"publish","type":"post","link":"https:\/\/www.KGM Strategy.com\/en\/insights\/strengthening-pharmaceutical-supply-chain-resilience\/","title":{"rendered":"Strengthening pharmaceutical supply chain resilience"},"content":{"rendered":"

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Since its initiation in April 2024, the Critical Medicines Alliance (CMA) has made significant strides in addressing vulnerabilities in the supply of essential medicines and Active Pharmaceutical Ingredients (APIs). With the Strategic Report in its finalization phase and key discussions on the upcoming Critical Medicines Act already underway, the European Union is actively working to strengthen pharmaceutical supply resilience. These efforts come in response to ongoing supply shortages triggered by global disruptions such as the US-China trade war, the COVID-19 pandemic, and geopolitical tensions. While regulatory frameworks are taking shape, industry players must act now\u2014reassessing their supply chain strategies proactively rather than waiting for legislative mandates.<\/p>\n

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The EU\u2019s Derisking Strategy<\/h2><\/div><\/div><\/div>

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Source: IHS Markit (2020); BCG Expert interviews; API IHS Code \u2013 all 2941 H6 codes<\/em>
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The EU Medicines Alliance advocates a “derisking” strategy rather than complete decoupling from external API sources. This approach aims to reduce the EU’s dependence on API imports, particularly from regions like China and India, where combined, these countries represent nearly 70% of the sites manufacturing APIs for antibiotics in 2020.<\/p><\/div><\/div><\/div>

Major Aspects Targeted by the Critical Medicines Alliance<\/h2>\n

The CMA focuses on several key areas to improve the pharmaceutical supply chain across Europe:<\/p>\n

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