Page 178 - CW E-Magazine (30-7-2024)

Special Report Special Report

Supply chains: Trends in chemical distribution a review of 600 active substances taken discussions in the Alliance, which Fine Chemicals Group (EFCG), sup-
will help the European Commission to ports potential policy moves to advance
from six national lists of critical medi-
cines. The goal is update that list on an identify what it terms as “pipeline fi ne chemical manufacturing in the EU.
istributors of chemicals, pharma (Independent Commodity Intelligence PATRICIA VAN ARNUM annual basis. investment projects,” which could bene-
ingredients, and other mate- Services) identifies Germany-based Editorial Director fi t from EU and national funding to Cefi c’s EFCG issued a set of recom-
Drials used in bio/pharma Brenntag as the top distributor with DCAT The European Commission carried strengthen manufacturing in the EU. mendations last November (Novem-
development and manufacturing play $18.6-bn in 2023 sales, followed by out an analysis of supply-chain vulner- The Alliance will also look at how mar- ber 2023), which included fostering
a crucial role. With increased product US-based Univar Solutions at $11.5-bn, cines. Earlier this year (April 2024), the abilities for a fi rst tranche of 11 critical ket incentives, such as capacity reser- supportive legislative policies for EU
and supply chain complexity, DCAT US-based Tricon Energy at $10.6-bn, European Commission launched the medicines on the Union list, published vation contracts and joint procurement, API manufacturers that emphasized
Value Chain Insights examines the key Japan-based Nagase & Co. at $6.5-bn, Critical Medicines Alliance. First in April 2024. The outcome of this work can be used to enhance security of sup- sustainable growth and reshoring initia-
trends and issues impacting markets and Netherlands-based IMCD at $5.1-bn. announced by the European Commission will inform the scope of the mandate of ply of critical medicines. In addition, tives while investing in innovation and
and supply chains. The regional leaders are Brenntag in October 2023, the Alliance will focus the Critical Medicines Alliance. In addi- the Alliance is taking a holistic view shifting procurement focus on supply
(Europe), Univar Solutions (North on industrial policy and complements tion, the European Commission will of the supply chain, and its members security and social-environmental stan-
Market size and top chemical America), Nagase & Co. (Asia Pacifi c), the reform of the EU’s pharmaceutical proceed with evaluating the remaining will seek to identify new synergies to dards. In making those recommenda-
distributors and Tricon Energy (Latin America/ legislation as proposed by the European medicines in the Union list. It will then work with each other more effectively, tions, EFCG pointed to the continued
Chemical distribution encompasses Middle East & Africa). The ICIS Top Commission. Set up as a consultative recommend priority actions for the near including creating new partnerships. decline of European-based API pro-
a wide scope of products, markets, and 100 Chemical Distributors ranking is mechanism to policy-makers, the future and propose new tools to address Given the global nature of the supply duction with respect to the supply of
industries. Essential raw materials are based on 2023 sales and year-end 2023 Alliance seeks to work to enhance secu- the challenges it has identifi ed. In partic- chain, these new partnerships could critical medicines. From a global pro-
produced and supplied by the chemical currency exchange rates. rity of supply, strengthen availability ular, the recommendations will focus on bring the diversifi cation of the supply duction share of 53% in 2000, the EU’s
industry to businesses in manufactur- of medicines, and reduce EU supply- mitigating structural risks, reinforcing chain of critical medicines. share of API production in 2020 fell to
ing and industrial sectors. These raw The ICIS Top 100 Chemical Distri- chain dependencies. The recommenda- supply by making demand more 25% due to increased competition from
materials are either sold directly by butors was compiled with the support of tions made by the Alliance will serve as predictable, encouraging diversifi- The European Chemical Industry lower-cost countries and EU pricing
producers or distributed to end users several industry associations represent- a basis for a multi-year strategic plan cation, and boosting manufacturing in Council (Cefi c), which represents EU and procurement policies not favour-
by outside distributors. Due to the out- ing chemical distributors: the European containing milestones and correspond- the EU. chemical manufacturers, is a member able to EU-based domestic manufac-
sourcing of value-added services, such Association of Chemical Distributors, ing deadlines for their implementation. of the Critical Medicines Alliances, and turing, according to information from
as logistics, packaging, blending, waste the US-based Alliance for Chemical Those efforts will also be part of through its sector group, the European EFCG.
removal, inventory management, and Distribution (formerly the National Key factors being analysed include
technical training, the distribution of Association of Chemical Distributors), an over-dependency on a limited num-
commodity and specialty chemicals by Associquim (the Brazilian Association ber of external suppliers, limited diver- Target Your Market More Effectively
third parties is predicted to grow more of Chemical and Petrochemical Distri- sifi cation possibilities, and limited pro-
than the sale of products directly to end butors), Responsible Distribution duction capacities. This will build on IndiaChemTrade
users, according to a recent analysis by Canada), UK-based Chemical Business the European Commission’s vulnerabi- Free for subscribers of Chemical Weekly
Grand View Research, a San Francisco, Association, and Netherlands-based lity analysis of supply-chain bottlenecks
California-based business intelligence International Chemical Trade Associa- of critical medicines on the Union list IndiaChemTrade provides consolidated trade statistics of India. The information provided here is based on
fi rm. tion. of critical medicines. The Union list of the annual trade data published by the Directorate General of Commercial Intelligence and Statistics,
critical medicines, which was published Government of India. The database can be searched by: Chemical Name/Harmonised Code to obtain the
The global chemical distribution Pharma ingredient supply lines by the European Medicines Agency last consolidated trade (import or export) in that item; or by Country to obtain the trade (import or export) in all
market was valued at $256.6-bn in Raw materials, chemicals, and December (December 2023), refers to chemicals and related products between India and that country.
2023 and is anticipated to grow at a related inputs used in pharmaceutical a list of critical medicines for the EU/
compound annual growth rate of 6.3% production represent just one segment European Economic Area, which con-
from 2024 to 2030, according to Grand in the global chemical distribution tains more than 200 active substances ChemXchange
View Research. The demand for chemi- market. In looking at broader issues of medicines considered critical for
cal distribution is projected to be driven impacting pharmaceutical supply chains healthcare systems across the EU/ Open to all – no subscription required
by rising chemical consumption in a and related inputs, a key issue poten- European Economic Area, for which ChemXchange – the chemical exchange with a difference – is where you can identify your buyers and
variety of end-use industries, including tially impacting pharm ingredient sup- continuity of supply is a priority and supplyers on-line, any time. Listing in this unique platform is free to all advertisers in the print version
pharmaceuticals, construction, poly- ply chains in the Europe Union (EU) for which shortages should be avoided.
mers & resins, and plastics. relates to policy moves to increase The list contains active substances of of Chemical Weekly for a period of 12 months.
manufacturing in the EU and reduce innovator and generic drugs covering
In looking at the top global chemi- dependence on other countries for a wide range of therapeutic areas and For more information contact: 022-24044471 / 72
cal distributors, in its annual analysis of active pharmaceutical ingredients (APIs) includes vaccines and medicines for Email: corporate@chemicalweekly.com or log on to chemicalweekly.com
the top 100 chemical distributor, ICIS and related inputs for critical medi- rare diseases. It refl ects the outcome of

178 Chemical Weekly July 30, 2024 Chemical Weekly July 30, 2024 179

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