Business

Drug production, supply take a hit

Production and distribution of medicine have been disrupted for the last four days due to violence since the beginning of the quota reform movement and associated curfew imposed by the government, drug makers said on July 22.

The industry operators said they were unable to receive imported raw materials from the Chattogram port and Hazrat Shahjalal International Airport as customs assessment and clearance was suspended for the ongoing internet blackout.

This may subsequently affect drug exports too, they said.

"Production of lifesaving drugs remains suspended since last Friday," said Md Mahbubul Karim, executive director (supply chain) at Incepta Pharmaceuticals.

There are adequate stocks of all the pharmaceuticals now to meet market demand for around one week but if the deadlock persists any longer, healthcare services will be seriously affected, he said.

Another concern was the absence of temperature-controlled facilities at the port and airport, for which some ingredients could get spoiled, he said.

Duty payments in cash are not accepted for release of raw materials, explained Karim.
All exports have been suspended since Thursday, said Wasim Haider, senior manager (international marketing) at Beximco Pharmaceuticals.

Although their production facilities were running in full swing, uncertainties remain over how long it could be continued, he said.

Domestic and global supply chains are almost wholly dependent on the internet and the blackout was seriously hampering trade, he added.

Bookings for shipment of four consignments had to be cancelled over the last three days while keeping contact with foreign clients over the phone, especially centring shipment and payment confirmations, was proving troublesome, he said.

Jahangir Alam, chief financial officer of Square Pharmaceuticals, said their factories were running operations partially to produce some essential drugs such as insulin as employees had apprehensions over the commute to their workplaces.

Drug distribution was also affected as they were having to manually issue invoices for delivering products, he said.

On any given day they usually issue 30,000 invoices but nowadays it had come down to 8,000 to 10,000 as many pharmacies opt to stay closed, he added.

Exports had been growing but the current situation would definitely have an impact on the overall production and supply, said Monjurul Alam, chief executive officer of Medicare, a wing of Beacon Pharmaceuticals.

Most drug makers are facing troubles maintaining correspondence with foreign clients and distributing medicine in the local markets due to the unrest, he said.

Some new foreign clients have even postponed scheduled factory visits, he said.

Export orders tend to be placed in the July-September period and the ongoing unrest during this critical time may affect the overall sector's business, which would be apparent at the end of the year, he said.

A solution may not be available overnight and the drug makers might have to run multiple manufacturing shifts instead of the existing single shift, he said.

Moreover, foreign buyers might lose confidence on the local manufacturers if they fail to stick to shipment schedules, added Alam.
 

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Drug production, supply take a hit

Production and distribution of medicine have been disrupted for the last four days due to violence since the beginning of the quota reform movement and associated curfew imposed by the government, drug makers said on July 22.

The industry operators said they were unable to receive imported raw materials from the Chattogram port and Hazrat Shahjalal International Airport as customs assessment and clearance was suspended for the ongoing internet blackout.

This may subsequently affect drug exports too, they said.

"Production of lifesaving drugs remains suspended since last Friday," said Md Mahbubul Karim, executive director (supply chain) at Incepta Pharmaceuticals.

There are adequate stocks of all the pharmaceuticals now to meet market demand for around one week but if the deadlock persists any longer, healthcare services will be seriously affected, he said.

Another concern was the absence of temperature-controlled facilities at the port and airport, for which some ingredients could get spoiled, he said.

Duty payments in cash are not accepted for release of raw materials, explained Karim.
All exports have been suspended since Thursday, said Wasim Haider, senior manager (international marketing) at Beximco Pharmaceuticals.

Although their production facilities were running in full swing, uncertainties remain over how long it could be continued, he said.

Domestic and global supply chains are almost wholly dependent on the internet and the blackout was seriously hampering trade, he added.

Bookings for shipment of four consignments had to be cancelled over the last three days while keeping contact with foreign clients over the phone, especially centring shipment and payment confirmations, was proving troublesome, he said.

Jahangir Alam, chief financial officer of Square Pharmaceuticals, said their factories were running operations partially to produce some essential drugs such as insulin as employees had apprehensions over the commute to their workplaces.

Drug distribution was also affected as they were having to manually issue invoices for delivering products, he said.

On any given day they usually issue 30,000 invoices but nowadays it had come down to 8,000 to 10,000 as many pharmacies opt to stay closed, he added.

Exports had been growing but the current situation would definitely have an impact on the overall production and supply, said Monjurul Alam, chief executive officer of Medicare, a wing of Beacon Pharmaceuticals.

Most drug makers are facing troubles maintaining correspondence with foreign clients and distributing medicine in the local markets due to the unrest, he said.

Some new foreign clients have even postponed scheduled factory visits, he said.

Export orders tend to be placed in the July-September period and the ongoing unrest during this critical time may affect the overall sector's business, which would be apparent at the end of the year, he said.

A solution may not be available overnight and the drug makers might have to run multiple manufacturing shifts instead of the existing single shift, he said.

Moreover, foreign buyers might lose confidence on the local manufacturers if they fail to stick to shipment schedules, added Alam.
 

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