"Securing Medicine is Crucial" Global Race to Secure COVID-19 Vaccine and Pharmaceutical Supply Chains

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Major countries around the world that have experienced the COVID-19 pandemic are focusing on securing supply chains for vaccines and essential medicines. Although vaccines are still in the development stage, due to the high global demand, countries aim to secure supply chains in advance. Similarly, concerns about shortages of other medicines such as antipyretics during the COVID-19 crisis have led more countries to establish domestic production channels.

According to Bloomberg and other sources on the 1st (local time), pharmaceutical companies such as Pfizer, Johnson & Johnson, and Moderna have recently begun securing vaccine supply chains. They are preparing facilities capable of mass-producing the key drug components used in vaccines and preemptively securing containers to hold the vaccines. The Wall Street Journal (WSJ) explained that not only vaccine development but also raw materials and factory facilities for mass production are necessary, along with channels for rapid distribution.

◆ Even if vaccines are developed, supply is crucial... Competition to secure channels from development → manufacturing → distribution = First, Johnson & Johnson, which is developing a vaccine using an inactivated cold virus, plans to increase the scale of bioreactors used for Ebola vaccine production by 90 times to secure the virus. They recently signed contracts with U.S. pharmaceutical manufacturers such as Emergent BioSolutions and plan to expand production facilities in Europe and Asia.

In Pfizer's case, they are designing new machines for manufacturing the drug component 'mRNA' used in the vaccine under development and are remodeling production plants. Pamela Sivik, Pfizer's Vice President of Global Supply, explained, "We are trying to do work that usually takes about a year within a few months and work that takes months within days," emphasizing the acceleration of the preparation process.

Securing containers to hold vaccines is also one of the necessary preparations. Medical glass required for container production has been in global shortage even before the COVID-19 pandemic. In June, the U.S. supported Corning, a glass product manufacturer, with $204 million to expand production capacity and produce COVID-19 vaccine containers. Johnson & Johnson reportedly secured 250 million vaccine containers independently in advance, and Pfizer has also started securing containers, according to WSJ.

Distributing vaccines to medical facilities in each country after production is also important. WSJ noted that thousands of flights have been suspended due to the pandemic, causing a shortage of transportation means and potential difficulties in securing distribution channels. Especially since vaccines require temperature control and special equipment such as refrigeration facilities, security must be strengthened to prevent medicine theft. Neil John Shah, Vice President of Flexport, an air transport company, said, "No company will have the entire vaccine supply chain from start to finish," emphasizing that "collaboration is essential."

Bloomberg suggested that if companies cannot handle vaccine transportation, governments might intervene. In the U.S., the Department of Defense could mobilize some civilian aircraft contracted with the Civil Reserve Air Fleet to secure and deliver vaccines. Bloomberg also reported that one complex aspect of vaccine supply is that some governments might engage in protectionist behaviors, hindering international cooperation.

[Image source=AP Yonhap News]

◆ The world moves to reduce dependence on medicines... Containing China = Governments worldwide that have experienced the COVID-19 crisis are focusing on building supply chains for essential medicines beyond vaccines. The demand for antipyretics and analgesics like paracetamol surged sharply during the crisis, raising concerns about complete depletion. The U.S., France, India, and others, recognizing high dependence on China for medicine supplies, are seeking ways to produce these medicines domestically.

At the end of last month, the U.S. government provided a $765 million loan to Eastman Kodak, famous for photographic film. Kodak, supported by the U.S. International Development Finance Corporation (DFC), launched 'Kodak Pharmaceuticals.' This was the first loan under the Defense Production Act, aimed at improving the high overseas dependence in the pharmaceutical sector. U.S. President Donald Trump emphasized, "This is a groundbreaking advancement in bringing pharmaceutical manufacturing facilities back to the U.S."

Europe is also seeking ways to bring medicines, heavily dependent on China and India, back within Europe. When French President Emmanuel Macron visited the French pharmaceutical company Sanofi's factory in June, he announced a reshoring policy to enable production of antipyretics and analgesics like paracetamol within France within three years. President Macron stated, "We are ready to invest in reshoring projects and more."

In addition, in June, President Macron requested Ursula von der Leyen, President of the European Union (EU) Commission, to prepare incentives related to developing core medicine production capacity within the EU. Subsequently, EU health ministers reportedly met in early last month, agreeing on the need to prevent structural vulnerabilities in medicine supply chains and discussing measures. Jens Spahn, Germany's Health Minister, recently emphasized securing independence, stating, "China should not decide whether we have sufficient protective equipment and medicines."

India, which has suffered greatly from COVID-19 after the U.S. and Brazil, also declared its intention to reduce dependence on China for medicines. On the 27th of last month, Sadananada Gowda, India's Federal Minister for Chemicals and Fertilizers, announced via Twitter plans to activate domestic manufacturing of medicines and medical devices. India, which manufactures a significant portion of the world's medicines, reportedly imports about 70% of raw materials for medicines from China. This dependence is seen as a vulnerability in the medicine supply chain and a threat to national health security, prompting measures to enable domestic production.

This content was produced with the assistance of AI translation services.