U.S. Opts Indian Pharma to Strengthen Medical Supply Chain Amidst China Dependency

The US pharmaceutical supply chain has faced challenges due to global sourcing, leading to drug shortages and recalls. President Biden and HHS Secretary announced initiatives to strengthen the domestic supply chain for critical drugs and APIs. Concerns have been raised about the US's reliance on China for APIs. The Biden administration is now focusing on collaboration with India to reduce this dependence. India's Production Linked Incentive Scheme aims to enhance domestic manufacturing of APIs.

Source: Link

FAQ - U.S. Opts Indian Pharma

Frequently Asked Questions (FAQs) with Answers: U.S. Opts Indian Pharma to Strengthen Medical Supply Chain Amidst China Dependency

Q1: Why is the U.S. looking towards Indian Pharma to strengthen its medical supply chain?

A1: The U.S. is looking towards Indian Pharma in an effort to diversify its supply chain and reduce dependency on China for pharmaceutical ingredients. ChemAnalyst hints at the strategic movement to leverage India's pharmaceutical capabilities to ensure a more stable and sustainable supply chain for medical products.

Q2: What challenges is India facing with its reliance on China for pharmaceutical ingredients?

A2: India's pharmaceutical industry relies on a diverse range of pharmaceutical ingredients from China. Any disruption in this supply can potentially affect India's production capacity and its ability to meet both domestic and international demand.

Q3: How has the value of India's pharmaceutical imports from China changed recently?

A3: There has been a decrease in the value of imports from China. As reported, the value dropped to $2.15 billion, down from $2.38 billion, indicating a reduced contribution of Chinese imports to the Indian pharmaceutical supply chain.

Q4: What is the Production Linked Incentive (PLI) scheme and how does it relate to the pharmaceutical industry?

A4: The PLI scheme is an initiative by the Indian government intended to encourage companies to manufacture domestic products competitively by offering incentives on incremental sales. It is designed to boost the production of Active Pharmaceutical Ingredients (APIs) and reduce reliance on imports, particularly from China.

Q5: What has been the impact of the Akorn Drugs shutdown on U.S. medical clinics?

A5: Medical clinics around the U.S. experienced the impact of Akorn Drugs shutting its doors in February. This instance highlights the vulnerability of the U.S. supply chain and the need for diversification to prevent drug shortages.

Q6: How is Germany adjusting its pharmaceutical imports in response to dependence on China?

A6: Similar to the U.S., Germany is also reducing its reliance on China for pharmaceuticals among other "critical industries." This change is affecting the imports of Chinese pharmaceutical goods into the German market, prompting a shift towards diversification.

Q7: What other factors are contributing to the drive for reducing pharmaceutical supply chain dependence on China?

A7: Supply shortages, geopolitical tensions, and the need for supply chain resilience are among the contributing factors influencing countries to reassess their dependencies on China for pharmaceuticals and seek alternatives like partnering with Indian pharmaceutical companies.

For further details on these points, refer to the full articles on ChemAnalyst.