Understanding supply chain and manufacturing trajectories, the landscape for therapies, modalities and indications, and how companies can grow through collaboration will be paramount for grasping the opportunities that come with the evolution of the life sciences industry. A recent survey(1) showed that life sciences companies are increasingly looking to grow through collaborations and partnerships with other life sciences and technology companies.
In the United States, the Biden administration has been focusing on policies to encourage onshoring, nearshoring, and even "allyshoring" of pharma and medical supply chains. The United States was chosen as the leading destination for manufacturing and supply chain operations by life sciences respondents globally, with over 52% of Americas respondents and 38% of North American respondents selecting the country as their top destination.
Further, when asked to identify new potential manufacturing and supply chain destinations, one-fifth of North American life sciences survey respondents stated that they are not considering new destinations at all, which suggests that they are already established in diverse destinations or are looking to build out domestically.
The Biden administration's goal is to increase resilience and minimise disruptions by reducing what the administration views as overreliance on foreign countries, especially mainland China, for these critical supply chains. But such supply chains are incredibly complex and deeply global, and making dramatic changes is often easier said than done.
Life sciences companies may be looking for future opportunities to potentially optimize and restructure supply chains for greater efficiencies, especially as data and technology transform and streamline operations. Clear legal guidance on the following matters will be important for such companies:
- tax;
- antitrust;
- bidding;
- pricing;
- trade sanctions and export controls;
- disputes; and
- environmental, social and governance considerations.
For further information on this topic please contact Kerry Contini at Baker McKenzie by telephone (+1 312 861 8000) or email ([email protected]). The Baker McKenzie website can be accessed at www.bakermckenzie.com.
Endnotes
(1) All findings are gleaned from survey findings developed by Baker McKenzie in partnership with Informa Pharma Intelligence in late 2021. For further information, see "Life Sciences Business Evolution Series: Shaping Growth — Supply Chains, Manufacturing and Collaboration".