Bachem Supply Chain Management

Bubendorf, Switzerland: – In an increasingly interconnected world, global events have a profound impact on all industries, including the pharmaceutical sector. Recent disruptions, such as the Covid pandemic, increased geopolitical tensions, extreme weather events, and blockage of sea routes have all posed substantial challenges to the supply of active pharmaceutical ingredients (APIs) and thus the continuity of drug supplies.

Recognizing this, peptide and oligonucleotide technology specialist Bachem has implemented robust strategies to mitigate these risks and ensure the continuous production and supply of high-quality APIs for drug manufacture.

Age of Disruption

Reliable supply of active pharmaceutical ingredients (API) is essential for the well-being of patients and global health. From sourcing responsibly to forecasting demand, anticipating bottlenecks and mitigating known and unknown risk factors, complex strategies are needed to ensure steady operational processes in an uncertain, volatile and complex world.

The topic was the subject of a recent Bachem webinar, hosted by Pascal Degen, its Vice President for Global Supply Chain Management, and Niklas Bauer from the Marketing Planning team (see Resources).

Recent disruptions that have significantly impacted global pharma supply chains either directly or through ‘ripple effects’ have included:

• COVID-19 Pandemic: causing unprecedented disruptions in global supply chains due to lockdowns, factory shutdowns, labor shortages, and increased demand for certain products.
• Sea Route Blockage: The blockage of the Suez Canal for almost two weeks by the grounding of the huge container carrier Ever Given disrupted global trade, causing delays in the delivery of goods. More recently, missile attacks have almost closed the Red Sea to commercial shipping while piracy remains a constant threat.
• Geopolitical Tensions: Ongoing geopolitical tensions, such as the trade war between China and the US and the conflict between Ukraine and Russia, have added complexity to global supply chains.
• Climate Change: The recent Hurricane Ida and the winter storm in Texas have highlighted the potential for extreme weather events to disrupt the supply of raw materials and caused delays in transportation.
• Cyber Attacks: Ransomware and other attacks criminal gangs and state actors on key infrastructure have disrupted tracking systems and caused significant delays.

These disruptions have all highlighted the importance of building resilient supply chains that can adapt to unexpected global events.

The pharmaceutical supply chain is extensive, starting with chemicals, API manufacturing, formulation, packaging, and drug delivery to the patient, involving many players. Global events can cause additional levels of impact, such as personnel, material, service, and equipment shortages, affecting the supply chain.

The Supply Chain Role of  API Manufacturers

APIs play a crucial role in the pharmaceutical supply chain. They are the primary components that give drugs their therapeutic effect. Any disruption in the supply of APIs can have significant consequences for the availability of essential medications.

For contract development and manufacturing organizations (CDMOs) such as Bachem, the supply journey begins at the API level, where upstream chemicals are sourced worldwide. These are essential for the chemical synthesis to manufacture peptide and oligonucleotide APIs.

From there, the product is sent to the customers or directly to a formulation site, where ingredients from various continents are combined to create the final medication (or finished dose product). This product is then primarily packaged, a process that can occur closer to the market or be consolidated, depending on the pharmaceutical company’s structure. Primary packaging materials such as aluminum and plastics are sourced globally.

Mitigating Supply Chain  Risks

As a leading CDMO for APIs, Bachem understands its critical role in the extensive pharmaceutical supply chain. The manufacturing of APIs is the initial and vital part of the drug supply chain, and any disruption can have significant downstream effects.

To mitigate the risks and threats present in the global pharmaceutical supply chain, Bachem has implemented strategies to mitigate supply chain risks, safeguard the continuous production and supply of APIs, and thus ensure business continuity. These strategies include maintaining strategic stock levels, validating transportation routes, and dealing with secondary and tertiary suppliers for key starting materials.

Shaping supply chain management strategies requires deep understanding of the complexities of the global pharmaceutical supply chain and the ability to adapt quickly to a disruptive global landscape. By doing so, Bachem can fulfil its commitment to ensuring drug supply and helping patients receive their medications on time.

About Bachem

Bachem is a leading, innovation-driven company specializing in the development and manufacture of peptides and oligonucleotides. The company, which has over 50 years of experience and expertise, provides products for research, clinical development, and commercial application to pharmaceutical and biotechnology companies worldwide and offers a comprehensive range of services.

Bachem operates internationally with headquarters in Switzerland and locations in Europe, the US and Asia. The company is listed on the SIX Swiss Exchange.

For further information, see www.bachem.com

Resources

Click on Mitigating Supply Chain Risks in an Age Of Disruption to access Bachem webinar.
Click on Bachem as CDMO for Peptides and Oligos  to learn more.
Click on Bachems News to see latest News & Events.