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rx-360-logo.jpg  Rx-360 News Flash
A Non-Profit Organization
Brussels, Belgium and Washington, D.C.
www.Rx-360.org

 06-July-2009  

As we have discussed previously, criminals and unethical players in the supply chain must have an opportunity to exploit to make a profit.  We have discussed how shortages of raw materials, such as with acetonitrile, can create such an opportunity. 

                                                                         

Just to remind everyone, the acetonitrile shortage was a result of several factors, but one of the major factors was the significant down turn in the economy.  We must now think about how the economy at large can impact the pharmaceutical supply chain.   One can only anticipate additional shortages of basic raw materials and chemicals that are widely used within the pharmaceutical industry, but where their pharmaceutical use only represents a small portion of their production.

                                                                           

For Example, the following article was recently published on www.in-PharmaTechnologist.com by Gareth Macdonald on 02-Jul-2009 describing how Dow Chemical is restructuring and closing three ethylene production facilities.  

Dow Chemical is closing three US manufacturing plants, including an ethylene production unit in Hahnville, Louisiana in a further bid to expand its specialty chemicals business.  
The other facilities earmarked for closure, a second in Hahnville and one in nearby Plaquemine, make ethylene derivatives for plastics manufacture, including for the production of pharmaceutical packaging.  (read more) 

What is the impact of an ethylene shortage to the pharmaceutical industry?  Will your polyethylene bottle manufacturers have enough raw material from the approved plant to continue manufacturing dispensing containers for your product? Will intravenous infussion set manufacturers continue to have enough raw materials to manufacture the intravenous infussion sets required to administer your product? The questions here are endless and ones that must be address in robust risk management plans within your companies.

 

Due to the nature of the pharmaceutical business, we tend to purchase small qualities of basic raw materials that are used in much larger quantities by other industries.  If the down turn in the global economy has a negative impact on that industry, it is only logical that more plant closures leading to shortages will occur.  Pharmaceutical companies must pay even closer attention to their extended supply chains and the potential impact of the economy on other industries in order to develop strategies to deal with potential future shortages.

Rx-360 | An International Supply Chain Organization - Brussels, Belgium, Washington D.C. - info@rx-360.org
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Rx-360: An International Pharmaceutical Supply Chain Consortium
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