Managing Product Supply Risks - Pharmaceutical Technology

Latest Issue
PharmTech

Latest Issue
PharmTech Europe

Managing Product Supply Risks
How to use geographic diversification and legacy technology transfers to avoid product shortages.


Pharmaceutical Technology
Volume 36, Issue 4, pp. 102-109

Dealing with product supply risks

With limited resources of people, money, time, and facilities, it is not possible to mitigate all risks. A key first step to addressing risks is to comprehensively identify and document risks, and rank them based on the severity of the disruption and its probability of occurrence. How and when a company addresses these risks depends on the company's tolerance for risk. Critical or high risks should be addressed, while the low or medium risks could be accepted and dealt with in a reactionary mode if and when they occur. Although many of these mitigation projects may have a negative return on investment, they should be considered as the insurance premium that a company is willing to pay to mitigate the risk.


Figure 1: Four strategies can be used to mitigate product supply risk. (ALL FIGURES ARE COURTESY OF THE AUTHOR)
Once the decision is made to deal with a risk, the team can consider several mitigation strategies, as shown in Figure 1. These are:
  • infrastructure
  • preventive and analytical technology
  • inventory control
  • diversification.

Infrastructure can be designed to mitigate the effects of natural disaster. For example, buildings can be constructed with seismic controls or fire-proofing.

Technology can be used to help prevent the risk of adventitious agents (e.g., viruses, mycoplasma, or prions). For example, media can be treated with high-temperature, short-time (HTST) or ultra-violet C (UVC) radiation or viral filtration, or a manufacturer can use raw materials that are animal-free, recombinant, or gamma-irradiated. In addition, analytical methods for early and rapid detection should be considered. Analytical tools that enable early detection (e.g., quantitative polymerase chain reaction assays for mycoplasma/viral contamination) might allow a manufacturer to isolate the problem and take corrective action before the contamination spreads through a facility.

Using inventory control, the combined shelf-life of drug substance intermediate (DSI), drug substance (DS) and drug product (DP) can be leveraged to minimize product shortfalls. By maintaining sufficient levels of DSI and DS, the impact of a sudden DP shortage could be mitigated by converting the DSI into DS, and then forward processing to DP. In addition, multisite storage of the DSI, DS and DP should be considered to avoid a stock-out situation in case of a disruption at the storage facility or with the transportation lanes. However, this needs to be balanced with the cost of inventory.

Finally, diversification by implementing backup manufacturing is an effective mitigation strategy. Diversification can be achieved using an in-house manufacturing network, partnership, or contract manufacturing organization (CMO) manufacturing capability. Recent industry surveys suggest that microbial and mammalian manufacturing networks are not fully utilized, which shows that diversification remains a viable option for companies to pursue to ensure robust product supply. Manufacturers should consider which products should be diversified and when this should be implemented, whether at late-stage clinical development or postcommercial approval of the product. Before employing diversification, a company should first consider whether the impact of disruption can be mitigated effectively using other options and if the company has the resources required for the desired technology transfers.


ADVERTISEMENT

blog comments powered by Disqus
LCGC E-mail Newsletters

Subscribe: Click to learn more about the newsletter
| Weekly
| Monthly
|Monthly
| Weekly

Survey
What is the single greatest threat to maintaining manufacturing processes at your facility?
Quality issues
Facility/environment problems
Process development problems
Production equipment downtime
Raw material supply problems
Regulatory restrictions
Business decisions to limit production
Quality issues
43%
Facility/environment problems
0%
Process development problems
0%
Production equipment downtime
14%
Raw material supply problems
14%
Regulatory restrictions
0%
Business decisions to limit production
29%
View Results
UPCOMING CONFERENCES

Programs for Investigational and Pre-Launch Drugs
Philadelphia, PA
July 17-18, 2013
Request Brochure

Strategic Pipeline Planning & Portfolio Valuation
Philadelphia, PA
August 13-14, 2013
Request Brochure

MES 2013 - Forum on Manufacturing Execution Systems
Philadelphia, PA
August 14-15, 2013
Request Brochure

Mobile Innovation for the Life Sciences Industry
Philadelphia, PA
August 20-21, 2013
Request Brochure

See All Conferences >>

Eric Langer Outsourcing Outlook Eric LangerOutsourcing's Modest Role as a Cost-Containment Strategy
Patricia Van Arnum Ingredients Insider Patricia Van ArnumIntellectual Property Battles in Solid-State Chemistry
Nathan Jessop Industry Insider Nathan Jessop Campaign Against Counterfeit Drugs Continues
Lynn Torbeck Statistical Solutions Lynn D. TorbeckCompositing Samples and the Risk to Product Quality
 More
Patent Settlements Become More Risky
Praise and Perils for Biotechnology Patent Policy
Risk-Mitigation Strategies in Drug Manufacturing for Emerging Markets
Quality Focus: Ensuring Raw Material Transparency
Advertising of Prescription Drugs  Keeping it Honest and Balanced
Source: Pharmaceutical Technology,
Click here