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Pharmaceutical Industry Policy During The COVID-19 Pandemic
Pharmaceutical Industry Policy During The COVID-19 Pandemic
Meliawati, et al.
DOI : https://doi.org/10.24843/JFU.2020.v09.i02.p02
pISSN: 2301-7716; eISSN: 2622-4607
Udayana Pharmacy Journal, Vol 9, No 2, Year 2020, 72-82
ABSTRACT
Drug shortages has been global problem since 2000s until now, and it become in serious condition by the presence of
the pandemic COVID-19. The main causes of drug shortages were economic and regulation, business problem, manufacture
and supply chain. During this pandemic, the main causes of drug shortages are many pharmaceutical industries closures due to
quarantine, logistical problems caused by border closure, export bans, quarantine of exporting active subtances and
drugs’countries, increased demand and pilling up.
However, this problem has been overcome by making policies and good cooperation between governments, regulatory institution
and the pharmaceutical industry throughout the world. Several policies like increasing production capacity, restrict quantity of
drugs purchased by the public, facilitate the process of industrial license and making a systems such as i-SPOC (Industry Single
Point of Contact). It is expected to reduce drugs shortages problem during this pandemic.
ABSTRACT
The problem of drug supply shortages has been a global problem since the mid-2000s until now, but this drug shortage
problem has been exacerbated by the COVID-19 pandemic. Prior to the COVID-19 pandemic, the main causes of drug supply
shortages were related to economic and regulatory reasons, business-related issues as well as manufacturing and supply
chains. Meanwhile, during a pandemic, the causes of drug shortages were due to many factory closures due to quarantine,
logistical problems caused by border closures, export bans, quarantines from countries supplying raw materials and medicines,
increased demand for medicines and a lot of hoarding. However, this problem has been overcome by making good policies and
cooperation between governments, regulatory agencies and the pharmaceutical industry around the world. Several policies
have been implemented, starting from increasing production capacity, imposing regulations regarding limits on the amount of
drugs that can be prescribed to patients or purchased by the public to prevent hoarding, facilitating the industrial licensing
process to creating systems such as i-SPOC (Industry Single Point of Contact) . Some of these policies are expected to reduce
the problem of shortage of drug supplies during the COVID-19 pandemic.
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Meliawati, et al.
DOI : https://doi.org/10.24843/JFU.2020.v09.i02.p02
pISSN: 2301-7716; eISSN: 2622-4607
Udayana Pharmacy Journal, Vol 9, No 2, Year 2020, 72-82
Asia. Drug supply shortages have different (FIRE); financial constraints; problem with
definitions. Different definitions from various forecasting, challenges in the Supply Chain
parties reflect perceptions Management section. Related financial constraints
countries or their respective institutions against include changes to the national budget as well as
drug supply shortages. Is it technically related to payments at the patient's own expense” (WHO,
supply chain issues or related to market issues 2016).
such as price, level of competition or financial Although there are several reasons for the
policy (De Weerdt et al., 2015). The Food and shortage of drug supply, parallel trade in drugs is
Drug Administration (FDA) defines a drug supply estimated to be one of the main sources of drug
shortage as a condition where demand in the scarcity (De Weerdt et al., 2015). Drug scarcity
United States exceeds the existing supply of drugs certainly has an unavoidable impact on public
(FDA, 2017). France defines drug supply shortages health, especially patients, causing delays in
as the inability of a community pharmacy in a starting treatment or triggering patient non-
hospital to provide drugs to patients within 72 compliance (Bochenek et al., 2018).
hours (Bocquet, 2017). Whereas in Germany,
they identified a shortage of drug supply at the
delivery level and compromised patient care when
alternative treatments were not available (Said et Parallel trading originates from the concept of a
al., 2018). common market for European countries without
being limited by regional boundaries. This process
occurs when parallel traders buy drugs in European
Union member countries at low prices and resell
Meanwhile, Italy said that drug supply shortages them to other EU countries at higher prices (De
were related to the unavailability of drug products Weerdt et al., 2015). If restrictions on goods in
in certain geographies due to supply chain parallel trade remain prohibited, then one day the
inefficiencies (Di Giorgio et al., 2019). price and quantity of goods agreed upon by EU
member countries such as Poland, Slovakia,
The problem of drug shortages has been a Greece, Spain in parallel trade will be very
problem since the mid-2000s. vulnerable to shortages. However, in the case of
and has become a concern of the World Health declining margins at both pharmacies and
Organization (WHO) since 2009 (Fox et al., 2014). wholesalers, parallel distribution will be highly
One of the actions taken by WHO to deal with the considered to increase revenue. This can lead to
problem of shortages in drug supply is that WHO the development of a process known as “reverse
holds a meeting to discuss this problem globally. traffic” where pharmaceutical distribution
WHO said that drugs that are experiencing a warehouses get medicines from community
shortage of supply are drugs whose patents have pharmacies more frequently than they do from
expired and are difficult to formulate. Drug supply pharmaceutical companies or other warehouses.
shortages also occur in frequently used drugs
such as antibiotics, cancer drugs, cardiovascular
and anesthetics. In addition to its report, WHO
reports that “drug supply shortages can occur at (Vazquez et al., 2015). Although illegal in the
several points in the supply chain process due to European Union, “reverse traffic” is a real problem
lack of capacity or no production capacity. ; for the pharmaceutical market in the European
problems with active pharmaceutical ingredients Union and substantially increases drug shortages
in pharmacies and pharmaceutical services (Rada, 2015).
In some cases of medication shortage, it may be
possible to offer treatment
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Meliawati, et al.
DOI : https://doi.org/10.24843/JFU.2020.v09.i02.p02
pISSN: 2301-7716; eISSN: 2622-4607
Udayana Pharmacy Journal, Vol 9, No 2, Year 2020, 72-82
alternatively, parallel exports of pharmaceuticals Apart from that, another big problem facing us is
often relate to innovative drugs. the shortage of supplies of medicines which are
The problem of drug shortages can also be essential for dealing with COVID-19, this shortage
caused by extraordinary geopolitical events such of drugs is expected to get worse with increasing
as COVID-19. At the beginning of 2020, the world time. Not only does it affect COVID-19 patients
was shocked by an outbreak of a new virus, directly but also threatens the health and safety
namely The Coronavirus Disease 2019 of patients with other diseases. There are also
(COVID-19). Since April 2 2020, COVID-19 has shortages of drugs touted as promising therapies
affected more than 200,000 Americans and killed against COVID-19 such as chloroquine and
more than 5,000 lives (Shah, 2019). The hydroxychloroquine.
COVID-19 pandemic has not hampered the
production and delivery of pharmaceuticals in the
first quarter of 2020, although in the following Scarcity does not only occur in these two drugs
months chemical shipments began to slow and but also in sedatives, antibiotics and vasopressors.
stockpiles began to dwindle. The existence of the The scarcity of sedative drugs such as midazolam
COVID-19 pandemic has made regulators and and propofol is quite worrying because these
world leaders aware of the extent to which China drugs are needed by patients for intubation
dominates the world's supply of active (Esther and Vincent, 2020).
pharmaceutical ingredients and chemical raw
materials. The industry's ongoing efforts in the
US and Europe to rebalance the supply chain of 2. MATERIALS AND METHODS
pharmaceutical chemicals will likely be driven by
government initiatives to ensure domestic drug The method in writing this article review is
production. During this pandemic, health workers literature study. Source used
are living lives full of risks because they have to namely the search for pharmaceutical industry
face the threat of contracting this virus, face policy keywords , pharmaceutical companies
enormous physical and emotional pressure. The policy dan drug shortages COVID-19 di
shortage of testing kits, masks, Personal Protective ScienceDirect, NCBI dan Google Scholar.
Equipment (PPE) and ventilators is making things The source of the articles used are articles
even more difficult. published from 2014 to the present.
3. RESULTS
The need if 2% of the world's population needs treatment 1.000 4,680 million 156 million
for COVID-19
20% of global demand for prophylaxis 10.000 46,800 million 1,560 million
(Zhang and Zhong, 2020).
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Meliawati, et al.
DOI : https://doi.org/10.24843/JFU.2020.v09.i02.p02
pISSN: 2301-7716; eISSN: 2622-4607
Udayana Pharmacy Journal, Vol 9, No 2, Year 2020, 72-82
Service problem
75,4% 86%
Pharmaceutical installation activities
%
Patient care
66%
Figure 1. Results of the Survey on the Impact of Drug Supply Shortages in European Hospitals (EAHP, 2014)
business related reasons. The business problems In addition, during the regional quarantine many
that lead to drug shortages are increasing prices, industries were not operating. There is also a
decreasing margins, increasing domination by a scarcity of drugs that are reported to have activity
number of manufacturers, tender systems that against COVID-19 such as hydroxychloroquine
favor large producers, etc. The third is issues due to many off-label prescribing and stockpiling,
related to manufacturing and supply chain. Some as a result of which hydroxychloroquine is currently
of the main problems related to manufacturing are difficult to obtain for non-covid patients who need
adaptation problems with increasingly stringent this drug such as rheumatoid arthritis patients and
government policies, long production lead times, other diseases . another autoimmunity. Even more
increasing raw material bottlenecks , and quality- worrying is the dearth of sedative drugs
related production failures (Beck, 2019).
such as midazolam and propofol which patients
need for intubation (Esther and Vincent, 2020).
Drug supply shortages can also be caused Chloroquine and hydroxychloroquine were
by extraordinary geopolitical events such as originally drugs used to treat malaria as
COVID-19. The number of drug shortages has antiplasmodium. This drug is a drug that contains
increased in recent years a group
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Meliawati, et al.
DOI : https://doi.org/10.24843/JFU.2020.v09.i02.p02
pISSN: 2301-7716; eISSN: 2622-4607
Udayana Pharmacy Journal, Vol 9, No 2, Year 2020, 72-82
Quinolines work by inhibiting the activity of the Asymchem production in China had reopened on
heme polymerase enzyme. Apart from being an 10 February, but the southernmost facility, the one
antimalarial, chloroquine is also widely used in the closest to Wuhan, was working with a smaller
treatment of autoimmune diseases such as Lupus, number of staff. Some manufacturers also take
Rheumatoid Arthritis, etc. Apparently, chloroquine extra precautions to avoid spreading the virus,
and hydroxychloroquine can also be used for including the industry requiring workers to eat
antiviral therapy. Chloroquine has a strong antiviral alone, wear masks while working, check
effect against the SARS-CoV virus in primate cells. temperature at least once a day or more, not hold
In addition, chloroquine and hydroxychloroquine gatherings such as meetings, etc.
increase endosomal pH which inhibits viral
replication (Al Bari, 2017). This drug appears to
interact with cellular angiotensin-converting enzyme (NPR, 2020).
2 (ACE2) receptors. This causes inhibition of the Regarding the demand for hydroxychloroquine
binding of the virus and receptors so that it can which has skyrocketed in recent times. This
prevent infection and the spread of the SARS-CoV prompted several states and supply chains in the
virus at concentrations that can cause clinical United States to implement allocation programs,
symptoms. During the COVID-19 pandemic in namely a measure to reduce product hoarding that
China, chloroquine was used at a dose of 500 mg aims to ensure the supply chain remains stable
for adults, 2 times a day, and the duration of even in limited quantities. Doctors are urged not to
therapy was less than 10 days. prescribe these drugs for prophylactic use as many
non-COVID patients are dependent on these drugs
Chloroquine and hydroxychloroquine are also such as Rheumatoid Arthritis (RA) and Lupus
being tested in Malaysia at the same doses used Erythematosus (SLE) patients. Meanwhile, the
in China (Du and Qu, 2020). industry promised to increase production or donate
a large number of tablets (Zhang and Zong, 2020).
NPR has reports on how disruptions in China On March 28, 2020, the FDA issued an Emergency
have severely affected the ability of some drug Use Authorization (EUA) to permit the emergency
manufacturers to manufacture key ingredients . use of hydroxychloroquine sulfate and will be
The nine companies operating in China said they supplied from the Strategic National Stockpile to
make a variety of pharmaceuticals and some also treat adults and adolescents weighing 50 kg or
make other health products such as nasal strips more and being hospitalized with COVID-19 where
and insecticides. So far, serious supply disruptions testing clinics are not yet available for COVID-19
have not occurred. Many facilities have resumed medicines. Currently hydroxychloroquine deficiency
operations following production disruptions related is acute.
to COVID-19.
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DOI : https://doi.org/10.24843/JFU.2020.v09.i02.p02
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Udayana Pharmacy Journal, Vol 9, No 2, Year 2020, 72-82
hydroxychloroquine for the domestic market mg. It is known that the current world demand is 300
(dominated by Ipca Laboratories Ltd.) with an 80% metric tons a year and most of it is for chronic
market share and the same amount for export (led by diseases. Meanwhile, the demand for
Zydus Cadila). Ipca is also a producer of chloroquine hydroxychloroquine for COVID-19
(di)phosphate It is also predicted that it will soon experience a surge.
in the world, which once owned 80% of the global For example, if 2% of the US population required
market share. Meanwhile, the Chinese market is led treatment with hydroxychloroquine, then 40 metric
by Shanghai Pharma with an 80% share in 2018. tons of hydroxychloroquine would be needed
The country produces about 35 metric tons of immediately. Whereas if 20% of the population of the
hydroxychloroquine for the domestic market, and 20 United States needed treatment, then 400 metric tons
tons for export, mostly to some non-ICH countries. In of hydroxychloroquine would be needed in a few
China this drug is sold in tablet form of 100 mg, while weeks. Globally, it requires 1,000 metric tons of drugs
in the US it is produced in the form of film-coated in a few weeks or three times the normal production
tablets at a dose of 200 mg. capacity.
Table 2. Strategies for the Pharmaceutical Industry to Prevent Hydroxychloroquine Supply Shortages
No. Name of Strategic Pharmaceutical Industry
1. Candela Increase production 5x to produce 20 tonnes of HCQ per month
2. Amneal Pharmaceuticals Increase production to 20 million tablets (4 tons) in mid-April.
3. Laurus Increasing production from mid-April from 5 to 15-20 tons per month.
4. Novartis Donated 130 million tablets (26 tonnes) at the end of May, including a stock of 50 million
tablets at the 200 mg dose (10 tonnes).
5. Mylan Increase production to 50 million tablets (10 tonnes).
6. You go Donated 16 million tablets to hospitals in the US (6 million tablets on March 31 and more
than 10 million in a month or about 3.2 tons).
7. Bayer Donated 3 million tablets to US hospitals.
(Zhang and Zong, 2020).
China is the main supplier of raw materials for COVID-19 in India is quite troubling. The current and
the manufacture of hydroxychloroquine for domestic future impact on the supply of hydroxychloroquine
use and for export to other countries. and other pharmaceuticals is uncertain. Recently,
The spread of COVID-19 is mostly in this country but India banned the export of hydroxychloroquine and
the majority of industries continue production normally. chloroquine, but all hoped the decision could be
China's abundant hydroxychloroquine capacity is reversed once domestic supplies were met (Molina et
substantial and has not been fully utilized for global al., 2020).
demand. Meanwhile India's capacity in supplying
global medicines is also very important. Spread trend In the opinion of the Marketing Authorization Holder
(MAH), ups and downs in requests and changes in
regulations/GMP can affect
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DOI : https://doi.org/10.24843/JFU.2020.v09.i02.p02
pISSN: 2301-7716; eISSN: 2622-4607
Udayana Pharmacy Journal, Vol 9, No 2, Year 2020, 72-82
external factors such as the availability of active to produce generic drugs that can help overcome
ingredients, excipients and equipment as well as drug supply shortages.
internal factors such as personnel, formulations and processes.
If an industry that has infrastructure does not want to
Collaboration between educational institutions and do it voluntarily for the national interest, then the
the pharmaceutical industry is very important to government must force them to help meet the needs
support R&D innovation and be able to reduce the of the state. Third, there needs to be a push to fund
risk of drug supply shortages (Panzitta et al., 2017). non-profit generic drug production in the United States.
Meliawati, et al.
DOI : https://doi.org/10.24843/JFU.2020.v09.i02.p02
pISSN: 2301-7716; eISSN: 2622-4607
Udayana Pharmacy Journal, Vol 9, No 2, Year 2020, 72-82
During this pandemic, many countries EMAs. This new mechanism enables better
implemented lockdowns , including one of the oversight of ongoing supply chain issues,
largest exporters of active pharmaceutical regardless of the licensing route and accelerates
ingredients in the world, namely China. So, India, the flow of information for the pharmaceutical
which is also the largest exporter of active industry aimed at reducing and preventing drug
pharmaceutical ingredients after China, is trying supply shortages related to COVID-19 drugs. In
to maintain supplies of active ingredients. As addition, EMA and European countries are
China is currently in lockdown, the Indian considering measures to prevent drug shortages
government and pharmaceutical industry assess through actions to support increased production
the vulnerability of supply chains in India. In the capacity by accelerating the approval of new
last few weeks, the government and representatives production lines. Discussions were also held with
of the Indian pharmaceutical industry have held the pharmaceutical industry to increase the
discussions to increase the production capacity production capacity of drugs used to treat
of active pharmaceutical ingredients in India by COVID-19, especially drugs that are at risk of
accelerating permits for factory construction experiencing a shortage of supply (EMA, 2020).
including permits with the ministry of environment,
providing facilities related to electricity, etc. Some
of these strategies can remove barriers to API
production in India (Chatterjee, 2020). In addition, another solution to reduce the
Meanwhile in Europe, the strategy to help shortage of drug supply is the ISMM (Integrated
reduce disruption to the supply of medicines, The System of Medicines Monitoring) system. This
EU Executive Steering Group on Shortages of ISMM is a system for collecting data on drug trade
Medicines Caused by Major Events, took strategic from pharmacies and reporting drug shortages
decisions for immediate and coordinated action and delivery plans, as well as the existence of
to overcome the shortage of medicine supplies in quotas (to ensure products are permitted for one
European countries during this pandemic. fixed market and can meet local demand).
Together with the pharmaceutical industry, a (Bochenek et al., 2018).
system was designed called i SPOC (Industry
Single Point of Contact) , which is a system to The pharmaceutical industry in Europe is
accelerate interaction between the industry and committed to fighting the COVID-19 pandemic,
the EU Executive Steering Group regarding drug one of which is by preventing the recurrence of
shortages. With this system, each pharmaceutical this outbreak in the future. The pharmaceutical
company will report directly to EMA to anticipate industry in Europe is committed to working
shortages of important medicines used in handling collaboratively with all research facilities and
COVID-19. healthcare establishments, leveraging their
knowledge and expertise to tackle this outbreak.
The company will continue to report any The aim of the pharmaceutical industry in doing
deficiencies to the relevant national authorities. so during this time of health crisis is to ensure the
The i-SPOC system is similar to the Single Point safe supply of medicines to patients who need
of Contact (SPOC) network set up in 2019 by the them, research and develop new vaccines,
EMA and authorized national authorities to share diagnostics and treatments for use in the fight
information on drug shortages based on the i- against COVID-19. As a partner and support
SPOC agreement in each pharmaceutical industry, organization in the field to fight COVID-19. In
which will provide information to anticipate the addition, companies that are members of EFPIA
scarcity of medicines related to COVID-19 to
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Udayana Pharmacy Journal, Vol 9, No 2, Year 2020, 72-82
(European Federation of Pharmaceutical Industries multi-markets in several countries, initially serving all
and Associations) is committed to donating millions of Europe as well as parts of Africa. Each country
of euros in the form of direct contributions in the form competes to ensure the availability of the necessary
of money to support health service agencies that medicines for its citizens. However, supply chains
play a direct role in treating patients and communities are designed to work across borders.
infected with COVID-19. Various essential needs
including advanced surgical equipment, antibiotics, No single country can meet all of its needs on its
disinfection kits, vitamins, protective clothing, own, and through restrictions, countries risk isolating
goggles, masks and gloves were donated. In themselves and their citizens from global supply
addition, antibacterial drugs approved for treating chains. COVID 19 is a global pandemic and requires
secondary infections such as pneumonia were also a global response. The most important effort made
donated. EFPIA's steps to address the risk of drug by EFPIA to meet patient needs is to ensure accurate
shortages caused by the coronavirus, namely as forecasting data to meet patient drug demand. EFPIA
many countries in Europe are approaching the peak urgently needs detailed modeling data from the
of the COVID-19 pandemic, the industries that are European Center for Disease Control. COVID 19 has
members of EFPIA are continuing to work around put enormous pressure on European intensive care
the clock to increase capacity and ensure the supply units, including the demand for medicines used in
of essential medicines for patients across Europe. In critical care. EFPIA is supporting a project initiated
fact, capacity building was one of the first actions by Medicines for Europe and its members trying to
taken by a pharmaceutical manufacturer, as part of assess the total demand for ICU medicines needed
its pandemic preparedness plan, activated back in in Hospitals across the European Union Countries
January. and collect supply and capacity data from
manufacturers of these medicines under close
supervision by European Commission Directorates
General for Competition and Health (EFPIA, 2020).
6. REFERENCES
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DOI : https://doi.org/10.24843/JFU.2020.v09.i02.p02
pISSN: 2301-7716; eISSN: 2622-4607
Udayana Pharmacy Journal, Vol 9, No 2, Year 2020, 72-82
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Meliawati, et al.
DOI : https://doi.org/10.24843/JFU.2020.v09.i02.p02
pISSN: 2301-7716; eISSN: 2622-4607
Udayana Pharmacy Journal, Vol 9, No 2, Year 2020, 72-82
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