Raw materials are vital to the development and production of safe and effective treatments. When their supply is undermined for any reason, the final pharmaceutical products in which they are used are automatically at risk. Any disruption in a medical complex production chain can lead to significant shortages, as the recent COVID-19 pandemic has demonstrated.
Global restrictions on the movement and export of goods have had a direct impact on the production and distribution of medicine raw materials and finished pharmaceutical products, with the problem primarily focused on the lockdowns in China and India.
China is among the largest producers of pharmaceutical raw materials in the world and in some categories it covers inconsiderable percentages of the world market.
With export activity of 4 billion dollars per year, it holds a dominant position in the global antibiotic market. Its exports in terms of raw materials are four times those of the next two countries (USA and India). In some antibiotics, such as tetracyclines, its share of the world market exceeds 50%, making it an essential supplier to the European pharmaceutical industry.
Its position is even stronger in the amino acid manufacturing sector, where it accounts for three-quarters of global exports ($3.5 billion per year). It is still the leading exporter in the vitamins ($2.75 billion) and ophthalmic agents (nearly $1 billion) categories. In addition, in glycosides its share of the world market is more than 80%, while it holds a leading position in the world trade of chemical intermediates for the pharmaceutical industry.
In total, almost 60% of the global production of active substances and their corresponding generics takes place in China and India.
Almost fatally during the pandemic, but also after its end, significant shortages of basic medicines were observed in Europe, including antibiotics, anesthetics, analgesics, etc. This fact highlighted the importance of resuming the production of the raw materials of medicines on European soil.
Investment – landmark in Tripoli
Heeding this vital need, the DEMO pharmaceutical company is making a landmark investment in Tripoli, where it is building two production units for raw materials of chemical origin and three production units for finished products.
It is the first time that raw materials for medicines will be produced on Greek soil. Especially since, when completed, the production facilities in Tripoli will be among the three largest penicillin and oncology medicine production units in the European Union.
These units in full operation will be able to cover 34% of the EU’s needs in penicillin medicine and 35% in oncology, in the medicine they will produce. This ensures access to medicines, strengthens the domestic pharmaceutical industry and achieves Europe’s pharmaceutical sufficiency and autonomy in these vital areas.
However, there are also significant benefits in the local and national economy, as well as in employment. The investment made by DEMO in Tripoli will initially lead to the creation of hundreds of new jobs in the Arcadia area. These will gradually increase until, in full operation within a decade, more than 1,000 direct and indirect jobs will have been created.
These include nearly 100 scientists who will work on the development and production of active raw materials for hospital use.
In the new units, sophisticated analytical methods will be applied for the quality control of the production plants and the products to be produced. The latest specifications from international pharmacopoeias and the International Council for Harmonization (ICH) on the technical characteristics of medicinal products for human use will also be applied.
DEMO’s production campus in Tripoli is at an advanced stage of construction and, according to the company’s schedule, the first phase of implementation will be completed in 2025. This important project is implemented in the context of DEMO’s broader development strategy and is part of the investment plan 2021- 2027 of the company, which is the largest in the industry.