Released April 09, 2020 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--The global industrial landscape is changing in response to the COVID-19 pandemic, and of all the industries deemed "essential," perhaps none is more important at this time than the global Pharmaceutical-Biotech Industry. In a recent webinar, Annette Kreuger, Industrial Info's vice president of Pharma-Biotech Industry research, and Shaheen Chohan, vice president of Global Analytics, discussed how the industry has changed and the directions it is taking.
In North America, Industrial Info is tracking more than 800 Pharma-Biotech projects that are currently under construction, with a combined value of $28.67 billion. More than $12 billion worth of projects have been approved, and more than $38 billion worth are in the planning stage. It is these projects in early development that run the greatest risk of being delayed due to the pandemic. To date, Industrial Info has tracked about $4.3 billion of Pharma-Biotech projects in North America that have been delayed or put on hold since March 1. But Kreuger emphasized that within the industry, which has a high project carry-through rate, the effects of COVID-19 more often would be delays, rather than outright cancellations. "This pause on everything is kind of a blip," said Kreuger, "but if you look at everything starting from 2020 and beyond, we had already reported almost $40 billion in project opportunities." Throughout the world, Industrial Info has added more than $6.2 billion in new Pharma-Biotech projects since March 1.
Outside of the U.S., the largest amount of project activity is occurring in Asia and Europe. While the U.S. in the past offshored a lot of production, Kreuger said most of the activity occurring in Europe and Asia, particularly in India and China, was to serve their domestic populations.
Reshoring production in the U.S. will almost certainly be a trend in the Pharma-Biotech sector as it moves into a post-COVID-19 world. Kreuger said, "In 2009, when the Great Recession hit, the Pharma Industry as a whole used that almost as an excuse to shore up its finances and ship off the low-profitability factors in its industry. ... They slashed domestic production, because it was cheaper to produce it overseas." Recent circumstances, however, have led to an emphasis on how important it is to have domestic drug supply and availability. The U.S. will see new production of active pharmaceutical ingredients (APIs) and other Pharma production return to its shores moving forward. Kreuger cited the example of a plant in West Virginia that had recently restarted production of hydroxychloroquine sulfate tablets, an antimalarial drug that could potentially treat COVID-19 if it is approved by the federal government.
Kreuger said the COVID-19 crisis had brought home to the U.S. the precariousness of relying on foreign production, not only for drugs related to COVID-19 but for everyday pharmaceuticals. "For the millions of people who take anticholesterol drugs or heart drugs--any of those things--the fact that we shipped off so much offshore to save some money will be helped by federal money and incentives. And that is going to make it much more acceptable to the drug companies" to reshore. Kreuger said especially production of the low-profit APIs and basic final formulations would be boosted by government support. Foreign direct investment in the U.S. could be restricted.
While the world may have pressed the pause button to a certain extent, the Pharma-Biotech Industry continues to move forward. Pharma 4.0 is emerging, bringing highly integrated manufacturing systems. "The more automated something is, the cleaner it is--cleaner both in final product as well as development," Kreuger said. Single-use systems and modular plug-and-play also are becoming more prevalent. Artificial intelligence will help with the drug-approval process, removing some of the human component in data analysis, providing better views of which drugs will work best for which people. More efficient continuous processing techniques in production are coming into play. Contract manufacturing organizations (CMOs) and contract research organizations (CROs) are gaining ground, particularly in the U.S.--and Industrial Info is keeping track of these movements and trends. Industrial Info's global Pharmaceutical-Biotech database now includes information on more than 6,000 active capital and maintenance projects and more than 9,600 operational plants. Join us as we help you navigate the currents of change in these turbulent times.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
In North America, Industrial Info is tracking more than 800 Pharma-Biotech projects that are currently under construction, with a combined value of $28.67 billion. More than $12 billion worth of projects have been approved, and more than $38 billion worth are in the planning stage. It is these projects in early development that run the greatest risk of being delayed due to the pandemic. To date, Industrial Info has tracked about $4.3 billion of Pharma-Biotech projects in North America that have been delayed or put on hold since March 1. But Kreuger emphasized that within the industry, which has a high project carry-through rate, the effects of COVID-19 more often would be delays, rather than outright cancellations. "This pause on everything is kind of a blip," said Kreuger, "but if you look at everything starting from 2020 and beyond, we had already reported almost $40 billion in project opportunities." Throughout the world, Industrial Info has added more than $6.2 billion in new Pharma-Biotech projects since March 1.
Outside of the U.S., the largest amount of project activity is occurring in Asia and Europe. While the U.S. in the past offshored a lot of production, Kreuger said most of the activity occurring in Europe and Asia, particularly in India and China, was to serve their domestic populations.
Reshoring production in the U.S. will almost certainly be a trend in the Pharma-Biotech sector as it moves into a post-COVID-19 world. Kreuger said, "In 2009, when the Great Recession hit, the Pharma Industry as a whole used that almost as an excuse to shore up its finances and ship off the low-profitability factors in its industry. ... They slashed domestic production, because it was cheaper to produce it overseas." Recent circumstances, however, have led to an emphasis on how important it is to have domestic drug supply and availability. The U.S. will see new production of active pharmaceutical ingredients (APIs) and other Pharma production return to its shores moving forward. Kreuger cited the example of a plant in West Virginia that had recently restarted production of hydroxychloroquine sulfate tablets, an antimalarial drug that could potentially treat COVID-19 if it is approved by the federal government.
Kreuger said the COVID-19 crisis had brought home to the U.S. the precariousness of relying on foreign production, not only for drugs related to COVID-19 but for everyday pharmaceuticals. "For the millions of people who take anticholesterol drugs or heart drugs--any of those things--the fact that we shipped off so much offshore to save some money will be helped by federal money and incentives. And that is going to make it much more acceptable to the drug companies" to reshore. Kreuger said especially production of the low-profit APIs and basic final formulations would be boosted by government support. Foreign direct investment in the U.S. could be restricted.
While the world may have pressed the pause button to a certain extent, the Pharma-Biotech Industry continues to move forward. Pharma 4.0 is emerging, bringing highly integrated manufacturing systems. "The more automated something is, the cleaner it is--cleaner both in final product as well as development," Kreuger said. Single-use systems and modular plug-and-play also are becoming more prevalent. Artificial intelligence will help with the drug-approval process, removing some of the human component in data analysis, providing better views of which drugs will work best for which people. More efficient continuous processing techniques in production are coming into play. Contract manufacturing organizations (CMOs) and contract research organizations (CROs) are gaining ground, particularly in the U.S.--and Industrial Info is keeping track of these movements and trends. Industrial Info's global Pharmaceutical-Biotech database now includes information on more than 6,000 active capital and maintenance projects and more than 9,600 operational plants. Join us as we help you navigate the currents of change in these turbulent times.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
