increasing transparency in the medicines supply...
TRANSCRIPT
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Increasing Transparency In The Medicines Supply Chain
Anthony TannGeneral Manager and Senior Director, USP APAC
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© 2019 USP
Agenda
• Who is USP?
• Global pharmaceutical supply chain
1. Overview of the supply chain
2. Vulnerabilities
3. Key actions : Supply chain transparency
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Who is USP?
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Need for medicine quality standards
11 Founding members with a vision
Legal recognition
Official compendium
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• 11 Founding members
with a vision
• Legal recognition
• Official compendium
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Documentary standards
Provides information and methods
needed to assess quality
Reference standards
A benchmark against which to
compare tested material
USP standards are utilized in over 150countries
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Our people – USP’s global staff and volunteers
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More than 9,000 USP Standards provide quality benchmarks across the supply chain
Standards for medicines, excipients, and APIs in USP-NF
– 350 General Chapters
– 4,900 product-specific monographs
– 3,500 physical reference standards
More than 1,200 standards for dietary supplements in the Dietary Supplements Compendium (DSC)
Nearly 1300 standards for Food Ingredients in Food Chemicals Codex (FCC)
More than 500 standards for biologics
About 300 Healthcare Quality & Safety
Standards for medicines, excipients, and APIs in USP-NF
– 350 General Chapters
– 4,900 product-specific monographs
– 3,500 physical reference standards
More than 1,200 standards for dietary supplements in the Dietary Supplements Compendium (DSC)
Nearly 1300 standards for Food Ingredients in Food Chemicals Codex (FCC)
More than 500 standards for biologics
About 300 Healthcare Quality & Safety Standards, including compounding, nomenclature and labeling, safety, etc.
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Overview of the
supply chain
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1820s-1860s 1870s-1950s 1960s-1970s
Botanicals and herbalmedicines
Local apothecaries with
knowledge of botanicals,
prepare remedies for
patients.
Rise of manufacturing
Analytical chemistry and
pharmacology along with
advances in automation give
rise to large-scale
manufacturing.
Global expansion
Pharmaceutical companies
continue expanding manufacturing
plants to other countries to
increase their markets and reduce
operating costs. As a result
medicines are produced and
packaged at a greater distance.
Growth, distribution, consolidation
Rise of generics in the early 80s
extends the supply chain as more
companies manufacture medicines
outside the U.S. Today, many
intermediaries play a role in
medicine’s production, distribution,
and delivery.
1980s-2020s
Increasing complexity of supply chain of medical
products
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Participants in the modern pharmaceutical supply chain
Sources: Datex (June 2019); CB Insights (Sep. 2018); FDA (June 2017); PhRMA (Nov. 2017); Qato et al. (Aug. 2017); CPGA (2013); PWC (Feb. 2011)
Raw Material
Suppliers
– Pharmaceuticals
typically contain
active ingredients
(API) and
excipient(s)
– Production of
starting material,
reagents, catalysts,
and solvents to
make
API/excipients is
usually outsourced
– Packaging,
labeling and
containers are
often procured from
different suppliers
Pharmaceutical
Manufacturers
– Contract
manufacturing
orgs (CMOs) are
often turned for
their specific
expertise
- Relabelers and
repackagers are
often involved
Wholesalers or
Distributors
– There may be
several
intermediaries
and procurement
channels
(publicly-funded,
privately-funded,
donor-funded)
– Buying groups or
warehouses
Providers
– This could
include hospitals,
online, mail
order, community
or retail
pharmacies, etc.
– Physician or
veterinary offices
can also
administer or
supply medicine
Patients
– Ultimately,
patients trust that
a medicine is of
high quality
because they
cannot perform
tests to ensure
quality
themselves
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The downstream supply chain differs by country and can involve many intermediaries
Sources: 1Institute of Medicine (IoM) (Feb.
2013); 2Onyango (Mar. 2019); Munson et al.
(Sep. 2013)
U.S.
Nigeria
Country ACountry B
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Vulnerabilities
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Drug shortages overwhelmingly have quality issues as root cause
Sources: FDA. “Drug Shortages: Root Causes and Potential Solutions.” Oct. 2019
The European Association of
Hospital Pharmacists (EAHP)
reported that 43.7% of
shortages were related to
quality issues.
Source: FIP. “Report of the International Summit on Medicines Shortage June 2013
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Leading to….
► “Just-in-time” manufacturing with little redundancy to absorb demand or supply shocks
► Increased outsourcing of ingredients and even final product manufacturing
► Lack of transparency limiting the ability of stakeholders to take mitigative action before its too late
Sources: Conti et al. “We still don’t know who makes this drug.” Health Affairs, Feb 2020; Woodcock, K. “Securing the U.S. Drug Supply Chain: Oversight of FDA’s Foreign Inspection Program.” Testimony to Congress, Dec 2019; FDA. “Drug Shortages: Root Causes and Potential Solutions.” 2019
► Increased pressure on margins, particularly for generics
► Insufficient incentives for quality
► Regulatory and logistical hurdles that prevent agile responsiveness to market events
Root causes
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Vulnerabilities are driven by greater complexity of the upstream supply chain…leading to drug shortages
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A sustained supply of quality medicines relies on stakeholders balancing cost, quality and supply chain resilience
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QualitySupply
Resilience
Tension arises because the only reliable information often available is cost
Supply resilience and quality can also require a tradeoff because investing in supply resilience through multiple suppliers may introduce variability, which increases quality risk
Increasing transparency on quality and supply resilience can rebalance negotiations to mitigate supply disruptions
Cost
QualitySupply
Resilience
Drug price
Capacity to absorb shocks
Sustained adherence to
cGMP
Sustained supply
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USP has identified key actions to secure a more resilient supply chain
https://www.usp.org/sites/default/files/usp/document/our-impact/covid-19/global-policy-supply-chain.pdf 16
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Foster more, not less, supply chain diversity
Invest in more manufacturing capacity for critical medicines
Enable more transparency and data sharing
Conduct crisis contingency planning and action
Strengthen regulatory systems and quality assurance globally
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Key actions:
Supply chain transparency
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25%
45%
56%
30%
3%
No Information
Labeler/Packer but nomanufacturer
Labeler/Packer
Manufacturer
API manufacturer
All manufacturers
Source: USP analysis of DailyMed
1 Includes ‘Analysis’,’FDF Manufacturer’, ‘Manufacturer”, Particle size reduction’, “Positron Emission Tomography Drug
Production’, ‘Recovery’, ‘Sterilize’, ‘Transfill’
2 ‘Label, Relabel, Pack, Repack’’
Need for greater upstream supply chain transparency
▸ All labels specify ANDA filer, an entity
responsible for the drug’s quality. However,
manufacturing is often done by a different
entity than the filer
▸While manufacturers are required and do
report suppliers to US FDA, also sharing
supply chain information publicly could help
providers proactively safeguard patient health.
(e.g., when a safety issue is identified with an
API manufacturer, providers will have on-hand
information about impacted brands)
Information listed on US approved human prescription drug labels (N=40,178)
Upstr
ea
m
Labels may include multiple categories
1
2
100%
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U.S. case example: dexamethasone
Context: • Widely available generic• As a steroid, has many substitutes• WHO Working Group meta-analysis of 7 randomized trials with 1703 patients showed 28-
day all-cause mortality was lower among patients who received corticosteroids
What is known about its supply chain• 24 approved manufacturers• 9 registered API manufacturers• FDA is informed of all qualified
suppliers during drug registration, although this information is not public
What is NOT known about its supply chain• While approval information is known, we don’t know
how many are manufacturing the medicine/API• How much volume is each manufacturer
responsible for? Available via proprietary sources• What API supplier does each FD manufacturer use
at any point in time? If most are using the same source, then the supply chain has a vulnerable node!
• What is global capacity for production?
Sources: FDA Orange Book, DMF listings; Janet Woodcock supply chain testimony to Congress, Oct 2019The WHO Rapid Evidence Appraisal for COVID-19 Therapies (REACT) Working Group. Association Between Administration of Systemic Corticosteroids and Mortality Among Critically Ill Patients With COVID-19: A Meta-analysis. JAMA. Published online September 02, 2020. doi:10.1001/jama.2020.17023
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Helps stakeholders to identify, characterize, and quantify risk in the upstream pharmaceutical supply chain so that stakeholders can proactively help protect patient access to quality medicines
New asset: Medicine Supply Map
– Data model that links across 10+ datasets and dozens of data elements, including USP’s proprietary reference standards demand data
– “In-the-field” data gathering, including through USP’s subject matter expert network
Driving supply chain transparency through the USP Pharmaceutical Supply Chain Center
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Increased transparency is meaningful only if data is standardized and shared
Upstream Downstream
Standardized data transfer and sharing
Track and trace the product across the chain
Information on product movement and understand demand
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Increased transparency is meaningful only if data is standardized and shared
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Further reading
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Further reading on supply chain policies