Fragile pharmaceutical logistics exposed
The ongoing conflict in the Middle East is highlighting the vulnerability of global pharmaceutical supply chains. Even with a temporary ceasefire in place, disruptions to air cargo and the Strait of Hormuz are creating the risk of higher prices for generic drugs and potential shortages, particularly in developing countries.
Clinical trials and temperature-sensitive medicines affected
Data from Phesi, a data science company, shows that clinical trials for cancer, heart, and other critical treatments in Turkey, Israel, and Egypt have been disrupted. About 6.7% of global clinical trials have been impacted, with the largest effects on lung cancer, breast cancer, heart failure, and multiple myeloma drugs. Time-sensitive shipments of temperature-controlled drugs face the greatest risk – delays of just two to three days can render them unusable.
Global pharmaceutical commerce at risk
According to Prashant Yadav, senior fellow at the Council on Foreign Relations, 10–20% of global pharmaceutical commerce passes through the Middle East. The conflict has forced manufacturers to reroute shipments of generic medicines, many made in India, through alternate hubs. These reroutings increase costs and strain logistics, particularly as shipments compete with fertilizers and other commodities held up by the bottleneck.
Price pressures and supply shortages
While the U.S. has not experienced drug shortages so far, rising transport costs and ingredient price shocks could squeeze manufacturers’ margins, especially for low-cost medicines. Developing countries are particularly vulnerable, as small increases in costs can translate into significant supply challenges.
Lessons for global supply chains
The war underscores how fragile and interconnected global supply chains have become. Even after lessons learned during COVID-19, disruptions remain frequent, forcing manufacturers and distributors to operate in “survival mode” rather than optimising efficiency.
Source: Axios
Featured picture: Aïda Amer/Axios
Also read: Strait of Hormuz reopening eases tension but economic risks linger
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