Feature article - The great pharma supply chain realignment

Alex Del Priore, senior vice-president of manufacturing services at Syngene, looks at the role India might play in a changing landscape 

As the global pharmaceutical landscape evolves, companies are adapting to a more dynamic environment by diversifying their supply chains. The COVID-19 pandemic and ensuing geopolitical tensions have exposed vulnerabilities in a global supply chain heavily reliant on China. In response, many companies are actively seeking alternatives, leading to a broader rethinking of how and where they source critical materials and manufacture products. 

This shift is not merely a reactive measure but reflects a deeper, more strategic reconsideration of global dependencies. Pharmaceutical companies, particularly those based in the US, are now grappling with the need to mitigate risks associated with over-reliance on a single country.  

These companies’ boardrooms are increasingly focused on supply chain resilience, driven by a recognition that geopolitical stability and operational continuity are paramount. This focus is influencing procurement decisions at a fundamental level, encouraging the exploration of options that were previously considered unnecessary or too costly. 

Advantage India 

The choice between a China-dependent and a China-independent supply chain is no longer a simple cost-benefit analysis. It has evolved into a critical decision that reflects a company’s risk tolerance, long-term strategy and response to external pressures from regulators and shareholders. 

In this context, a dual supply chain option is more than just a strategic advantage, it is a necessity. India's pharmaceutical industry is poised to play a pivotal role in the evolving global supply chain. The recent shifts in the manufacturing landscape present a unique opportunity for Indian CRDMOs to position themselves as reliable and flexible alternatives.  

By leveraging its robust pharmaceutical ecosystem and skilled workforce, India is well-equipped to attract global pharmaceutical companies seeking to diversify their manufacturing bases. This transition is driven not only by cost competitiveness but also by the pressing need for a more sustainable and resilient supply chain.  

To meet global demands, India must prioritise quality, innovation, and compliance at every stage of production. Companies like Syngene are leading this transformation by building ecosystems that meet—and even surpass—the established standards in other regions.  

Critical factors 

This transformative journey hinges on several critical factors that will strengthen India’s position as a global leader. First and foremost, robust quality systems adhering to international standards are essential. Indian companies must not only meet but also exceed the regulatory expectations of their global counterparts to gain and maintain trust.  

GMP and ISO certifications are no longer optional—they are vital for competing on the global stage. Syngene’s ‘Anytime Audit Ready’ philosophy exemplifies this commitment, ensuring consistent adherence to high-quality standards and moving away from the reactive approach of preparing solely for audits. 

Second, the integration of advanced technologies is crucial. Automation, artificial intelligence (AI) and blockchain are not just buzzwords; they are the tools that will define the future of pharmaceutical R&D and manufacturing.  These technologies enhance traceability, efficiency, and transparency, which are all critical in building a supply chain that is both resilient and competitive. Syngene’s investment in proprietary AI tools like Syn.AI and Sarchitect reflects a broader industry trend toward leveraging technology to drive efficiency and innovation in drug discovery and manufacturing. 

Collaboration is key 

However, technology alone cannot solve the challenges of supply chain diversification. Collaboration is equally important. Indian CRDMOs must work together to create a cohesive ecosystem that supports the entire supply chain, from raw materials to finished products. This effort extends beyond individual companies and requires the active government involvement.  

Government support must go beyond mere incentives. There needs to be a focus on building infrastructure, encouraging R&D. While supportive policies like the Production-Linked Incentive (PLI) scheme and the Atmanirbhar Bharat mission have made significant strides in fostering a self-reliant pharmaceutical ecosystem in India, continued and enhanced support is essential to sustain this momentum and ensure India's emergence as a global pharmaceutical powerhouse.  

Outlook 

The strategic decisions being made today by pharmaceutical companies will have long-term implications for the industry. The choice to diversify supply chains is not just a reaction to current challenges but a proactive strategy to build a more secure and sustainable future.  

In the coming years, the supply chain will likely become more fragmented as companies seek to mitigate risks and ensure continuity. This fragmentation will present challenges but also opportunities for those who can adapt to the new landscape. Companies that can offer flexible, resilient and compliant supply chain options will be well positioned to lead in this new era. 

The broader challenge for the industry is to create a supply chain ecosystem that is not only resilient but also capable of driving innovation and maintaining global quality standards. This requires a collective effort from all stakeholders—companies, governments and regulatory bodies—to build a supply chain that is fit for the future. 

The future of the global pharmaceutical supply chain is not yet written, but it is clear that those who can combine resilience with innovation will be the ones to shape it. The decisions made today will determine the industry’s ability to meet future challenges, and companies that are proactive in building resilient supply chains will be the ones that thrive in an increasingly complex and uncertain world.