Optimised global trade routes seen as vital for the pharma industry

Sector expert issues new call for action

According to Hari Chereddi, CEO of HRV Global LifeSciences, ongoing disruptions in the global supply chain involving transport and logistics, exacerbated by the recent CrowdStrike outage and heatwaves across continents, underscore the critical importance of open and secure trade routes for the pharmaceutical industry.

Chereddi, a prominent figure in the global pharmaceutical sector, emphasised that these trade routes are vital for ensuring a steady and safe supply of medications.

On July 19, 2024, CrowdStrike experienced a significant glitch in a cloud-based Falcon component update. This led to widespread disruptions of tech networks globally, with millions of Microsoft Windows devices ceasing to function, affecting critical sectors such as banking, airlines, and media.

Although the pharmaceutical industry did not experience significant disruptions due to the CrowdStrike meltdown, Chereddi stressed the need for robust cyber measures and best practices to safeguard the sector’s operations.

Chereddi said: We are not yet facing a black swan event. However, persistent obstacles to smooth trade must be addressed by policymakers worldwide. The recent CrowdStrike incident is a potent reminder of the need for resilient and secure systems.”

Chereddi highlighted several vital reasons why international trade routes are indispensable to the pharmaceutical industry:

Access to pharmaceuticals and medical supplies: All countries depend on global trade to acquire essential medicines, vaccines, and medical equipment that may not be produced domestically or are more cost-effective to import. Reliable trade routes ensure a continuous supply of these crucial healthcare products.

Research and development collaboration: Global trade fosters medical research and development collaboration. Pharmaceutical companies, research institutions, and universities often collaborate across borders to develop new treatments and technologies. Trade connections, especially in geopolitically unstable regions, facilitate exchanging knowledge and resources essential for these advancements.

Economic efficiency: International trade enables countries to specialise in producing certain medical goods more efficiently, whether due to lower production costs, expertise, or access to specific resources. This efficiency helps reduce costs and improves the affordability and availability of healthcare products worldwide.

Emergency response and preparedness: During health emergencies, such as pandemics or natural disasters, global trade routes are crucial for swiftly mobilising medical aid, humanitarian supplies, and personnel. This rapid response capability is essential for mitigating the impact of crises and saving lives.

Regulatory harmonisation and quality assurance: Trade agreements often include provisions for standardising regulations and ensuring the quality and safety of internationally traded healthcare products. This harmonisation helps maintain high standards of global healthcare delivery.

Innovation and adaptation: Access to international markets drives innovation in healthcare, encouraging the development of new treatments, diagnostics, and delivery models. Companies strive to meet diverse consumer needs and regulatory requirements, fostering advancements in AI, robotics, and autonomous technologies.

Chereddi added: “International trade routes and the underlying technology are indispensable for the global flow of medical goods. They support innovation, collaboration, and resilience in healthcare systems worldwide.

“We must continue learning from past experiences, such as the recent CrowdStrike incident and previous pandemics, to ensure that healthcare remains accessible, especially during these challenging times.”

Headquartered in Hyderabad, India, HRV Global Life Sciences is a leading global manufacturer and market expansion company specialising in active pharmaceutical ingredients, advanced pharmaceutical intermediates, pellets, food-grade chemicals, food additives, and food ingredients.

The Indian company operates in six global locations, including Switzerland, Lithuania, the UAE, Turkey, and the United States. The company’s mission is to deliver profitable and effective best practices while maintaining high-quality standards and continuously improving product offerings.

Featured image: During health emergencies, global trade routes are crucial for swiftly mobilising medical aid, humanitarian supplies, and personnel. Credit: Toon Lambrechts