The Impact of COVID-19 on the Pharmaceutical Supply Chain in Egypt: The Case of Pharco Group

The Impact of COVID-19 on the Pharmaceutical Supply Chain in Egypt: The Case of Pharco Group

Sandra Samy Haddad, Zeina Ibrahem El-Desouky, Ahmed Saed Ahmed, Saurav Negi
Copyright: © 2023 |Pages: 18
DOI: 10.4018/978-1-6684-4686-7.ch005
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Abstract

The COVID-19 pandemic is regarded as the major disruptive event of this decade, resulting in unexpected socio-economic impacts worldwide. The COVID-19 pandemic has caused considerable damage to various industries worldwide. Availability and supply of a wide range of raw materials, intermediate goods, and finished products have been seriously disrupted. The magnitude of the COVID-19 pandemic has had an enormous impact on the health system and pharmaceutical industry in almost every country globally. This new virus has resulted in pharmaceutical organizations experiencing unprecedented logistical restrictions as a result of increasing demand and limited capacity. Accordingly, this case study assesses the impact of the COVID-19 pandemic on the supply chain (SC) integration of the pharmaceutical sector in Egypt. A case study technique was used for better understating of the situation and to analyze the industry's position and its capabilities to face the consequences of the pandemic, which hindered the integration along the supply chain.
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Impact Of Covid-19 On The Supply Chain Of The Pharmaceutical Sector

Prior to the Covid-19 outbreak, several pharmaceutical companies faced insufficient active pharmaceutical ingredients (APIs) supply, resulting in some essential drug shortages, while others had a stockpile of APIs; the companies either sold these supplies at exorbitant prices or refused to sell them due to insufficient amounts in their stockpile. Due to China's monopoly in API manufacturing and export, Indian pharmaceutical companies are the main importers of APIs created in China for use in their drugs. The international community relies on India for generic medications because there are no other reputable active ingredient suppliers or big drug manufacturers accessible. Furthermore, before the international community, national medication producers would respond to their own requests. As a result, multiple talks between the Indian government and key industry partners were conducted to raise the national manufacturing volume of APIs. Due to measures designed to prevent the spread of the Covid-19 epidemic, the capacity to procure raw materials, make, and supply medications has been restricted.

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