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Why reshoring drug production means embracing continuous manufacturing

Recent history should have the pharmaceutical industry questioning some of its fundamental assumptions. The COVID-19 pandemic led to
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Recent history should have the pharmaceutical industry questioning some of its fundamental assumptions.

The COVID-19 pandemic led to skyrocketing demand for some products while simultaneously constraining supplies due to logistical breakdowns and protectionist practices. The logic of outsourcing production to other countries, primarily China, suddenly looked dubious as Western countries struggled to import the drugs they needed.

The war in Ukraine, which has left it dependent on emergency aid, exposed the consequential link between a country’s pharmaceutical supplies and its geopolitics. The conflict in Ukraine once again underscores how quickly the status quo can break down and lead to vital drug shortages that put public health in dire straits.

China’s aggressive efforts to stop the resurgence of the coronavirus further emphasize the unpredictable state of affairs today and the fragile position of global drug production. If the situation gets worse in China, what does that mean for all the countries that depend on drugs and APIs produced there?

With so many recent instances of pharmaceutical supply chains slowing or breaking down, there have been calls to reshore production, by governments and companies alike, in both the US and Europe. That’s a perfectly reasonable response – domestic production is much more resilient. But reshoring is also a huge challenge given the economic, regulatory, and logistical obstacles involved.

We have plenty of compelling reasons to move production out of China. What’s still missing are viable ways to bring it back to the US or Europe.

Embracing Continuous Manufacturing

Drug companies turned to China in the first place because it was cheaper and often faster to produce abroad. Inshoring production in any meaningful way will mean recreating those same advantages at home despite the stark cost differential that persists between China and the West.

Continuous manufacturing could be the solution. Unlike batch manufacturing, where drug production is segmented into a series of slow-moving steps, continuous manufacturing relies on a fully integrated process that runs uninterrupted from beginning to end. The methods of continuous manufacturing deserve their own in-depth discussion. It’s the merits that are relevant here.

Continuous manufacturing lowers costs by condensing processes that used to take months of expensive work into a few days. It also promotes the use of automation and robotics to shrink labor costs while improving quality controls to minimize waste. In addition to being less expensive, continuous manufacturing can expedite regulatory checks without compromising oversight. Essentially, it’s a way to make producing drugs in the US or Europe just as efficient, cost-effective and agile as producing the same thing in China – without the long, sensitive supply chain standing in between.

The pharmaceutical industry has been discussing (and to a lesser extent embracing) continuous manufacturing for years now. With the urgent need to inshore production before the next global upheaval happens, it’s time to commit to continuous manufacturing. Not only will this make domestic drug supplies resilient in an uncertain future. Successfully inshoring just half the drug production currently in China will also bring massive amounts of jobs, investment and GDP growth to the US and Europe.

Paving the Way for Continuous Manufacturing

Moving production while simultaneously experimenting with a new production methodology can seem like a daunting prospect. The public and private sectors both have a role to play in making continuous manufacturing a reality.

  • Formulate a National Plan – Continuous manufacturing thrives on integration and coordination, making it important to act on a national level with the joint input of regulators and industry leaders. A national (or EU-wide) plan will help focus investment, revise regulations, and identify priorities so that inshoring has the biggest impact in the least time.
  • Make Quality the Priority – Rather than trying to compete with China (or elsewhere) on cost, the US and Europe should strive to produce the highest quality drugs and APIs, and put regulations in place to promote those efforts. Quality drugs not only benefit from having built-in demand but also, often, have lower overall production costs thanks to fewer rejects and recalls.
  • Keep Pushing the Envelope – Continuous manufacturing is just one facet of advanced manufacturing, where digital technologies make production processes highly efficient, autonomous, and integrated. Embracing continuous manufacturing should be part of a broader push to make American and European drug production the most advanced and innovative in the world.

Whether it’s a public health emergency, international conflict, or severe weather event, the next shock is coming. Inshoring drug production keeps the unexpected from becoming a pharmaceutical emergency – while bringing a multi-billion dollar industry back to American and European shores. The case for inshoring is clear. And with continuous manufacturing, the path forward is too.

About the author

Frédéric Kahn, vice president of Sales, Wavelength Pharmaceuticals. Possessing over three decades of extensive knowledge and expertise in many facets of the pharmaceuticals, packaging andmedical devices sectors, Frederic Kahn brings unique insights andglobal leadership to the forefront. Well-versed in key areas required to build and grow a successful lifesciences organization, including key leadership roles in sales andmarketing, finance and business management, Frederic has a proventrack-record of building and developing successful organisations,across Europe and the Middle East, Asia and the United States.

Frederic has held key leadership positions at Rhone-Poulenc,NextPharma, Gerresheimer, Lonza and, currently, WavelengthPharmaceuticals. He excels at identifying talent, developing andmentoring successful strategic account management teams, andcultivating an environment that optimises potential. Frederic is a passionate and respected leader who is committed tomaximizing customer, employee and community happiness,resulting in a trustworthy and optimally profitable business. He hasserved many times as a speaker at the Strategic AccountsManagement Association (SAMA) Annual Conference and otherevents. Frederic holds a Bachelor of Sciences in Economics from theCollege of New Jersey and an MBA from Institut de Controle deGestion, Paris.

Father of two daughters, Frederic is also a writer and marathonrunner. 

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There will soon be one million seats on this popular Amtrak route

“More people are taking the train than ever before,” says Amtrak’s Executive Vice President.

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While the size of the United States makes it hard for it to compete with the inter-city train access available in places like Japan and many European countries, Amtrak trains are a very popular transportation option in certain pockets of the country — so much so that the country’s national railway company is expanding its Northeast Corridor by more than one million seats.

Related: This is what it's like to take a 19-hour train from New York to Chicago

Running from Boston all the way south to Washington, D.C., the route is one of the most popular as it passes through the most densely populated part of the country and serves as a commuter train for those who need to go between East Coast cities such as New York and Philadelphia for business.

Veronika Bondarenko captured this photo of New York’s Moynihan Train Hall. 

Veronika Bondarenko

Amtrak launches new routes, promises travelers ‘additional travel options’

Earlier this month, Amtrak announced that it was adding four additional Northeastern routes to its schedule — two more routes between New York’s Penn Station and Union Station in Washington, D.C. on the weekend, a new early-morning weekday route between New York and Philadelphia’s William H. Gray III 30th Street Station and a weekend route between Philadelphia and Boston’s South Station.

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According to Amtrak, these additions will increase Northeast Corridor’s service by 20% on the weekdays and 10% on the weekends for a total of one million additional seats when counted by how many will ride the corridor over the year.

“More people are taking the train than ever before and we’re proud to offer our customers additional travel options when they ride with us on the Northeast Regional,” Amtrak Executive Vice President and Chief Commercial Officer Eliot Hamlisch said in a statement on the new routes. “The Northeast Regional gets you where you want to go comfortably, conveniently and sustainably as you breeze past traffic on I-95 for a more enjoyable travel experience.”

Here are some of the other Amtrak changes you can expect to see

Amtrak also said that, in the 2023 financial year, the Northeast Corridor had nearly 9.2 million riders — 8% more than it had pre-pandemic and a 29% increase from 2022. The higher demand, particularly during both off-peak hours and the time when many business travelers use to get to work, is pushing Amtrak to invest into this corridor in particular.

To reach more customers, Amtrak has also made several changes to both its routes and pricing system. In the fall of 2023, it introduced a type of new “Night Owl Fare” — if traveling during very late or very early hours, one can go between cities like New York and Philadelphia or Philadelphia and Washington. D.C. for $5 to $15.

As travel on the same routes during peak hours can reach as much as $300, this was a deliberate move to reach those who have the flexibility of time and might have otherwise preferred more affordable methods of transportation such as the bus. After seeing strong uptake, Amtrak added this type of fare to more Boston routes.

The largest distances, such as the ones between Boston and New York or New York and Washington, are available at the lowest rate for $20.

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The next pandemic? It’s already here for Earth’s wildlife

Bird flu is decimating species already threatened by climate change and habitat loss.

I am a conservation biologist who studies emerging infectious diseases. When people ask me what I think the next pandemic will be I often say that we are in the midst of one – it’s just afflicting a great many species more than ours.

I am referring to the highly pathogenic strain of avian influenza H5N1 (HPAI H5N1), otherwise known as bird flu, which has killed millions of birds and unknown numbers of mammals, particularly during the past three years.

This is the strain that emerged in domestic geese in China in 1997 and quickly jumped to humans in south-east Asia with a mortality rate of around 40-50%. My research group encountered the virus when it killed a mammal, an endangered Owston’s palm civet, in a captive breeding programme in Cuc Phuong National Park Vietnam in 2005.

How these animals caught bird flu was never confirmed. Their diet is mainly earthworms, so they had not been infected by eating diseased poultry like many captive tigers in the region.

This discovery prompted us to collate all confirmed reports of fatal infection with bird flu to assess just how broad a threat to wildlife this virus might pose.

This is how a newly discovered virus in Chinese poultry came to threaten so much of the world’s biodiversity.

H5N1 originated on a Chinese poultry farm in 1997. ChameleonsEye/Shutterstock

The first signs

Until December 2005, most confirmed infections had been found in a few zoos and rescue centres in Thailand and Cambodia. Our analysis in 2006 showed that nearly half (48%) of all the different groups of birds (known to taxonomists as “orders”) contained a species in which a fatal infection of bird flu had been reported. These 13 orders comprised 84% of all bird species.

We reasoned 20 years ago that the strains of H5N1 circulating were probably highly pathogenic to all bird orders. We also showed that the list of confirmed infected species included those that were globally threatened and that important habitats, such as Vietnam’s Mekong delta, lay close to reported poultry outbreaks.

Mammals known to be susceptible to bird flu during the early 2000s included primates, rodents, pigs and rabbits. Large carnivores such as Bengal tigers and clouded leopards were reported to have been killed, as well as domestic cats.

Our 2006 paper showed the ease with which this virus crossed species barriers and suggested it might one day produce a pandemic-scale threat to global biodiversity.

Unfortunately, our warnings were correct.

A roving sickness

Two decades on, bird flu is killing species from the high Arctic to mainland Antarctica.

In the past couple of years, bird flu has spread rapidly across Europe and infiltrated North and South America, killing millions of poultry and a variety of bird and mammal species. A recent paper found that 26 countries have reported at least 48 mammal species that have died from the virus since 2020, when the latest increase in reported infections started.

Not even the ocean is safe. Since 2020, 13 species of aquatic mammal have succumbed, including American sea lions, porpoises and dolphins, often dying in their thousands in South America. A wide range of scavenging and predatory mammals that live on land are now also confirmed to be susceptible, including mountain lions, lynx, brown, black and polar bears.

The UK alone has lost over 75% of its great skuas and seen a 25% decline in northern gannets. Recent declines in sandwich terns (35%) and common terns (42%) were also largely driven by the virus.

Scientists haven’t managed to completely sequence the virus in all affected species. Research and continuous surveillance could tell us how adaptable it ultimately becomes, and whether it can jump to even more species. We know it can already infect humans – one or more genetic mutations may make it more infectious.

At the crossroads

Between January 1 2003 and December 21 2023, 882 cases of human infection with the H5N1 virus were reported from 23 countries, of which 461 (52%) were fatal.

Of these fatal cases, more than half were in Vietnam, China, Cambodia and Laos. Poultry-to-human infections were first recorded in Cambodia in December 2003. Intermittent cases were reported until 2014, followed by a gap until 2023, yielding 41 deaths from 64 cases. The subtype of H5N1 virus responsible has been detected in poultry in Cambodia since 2014. In the early 2000s, the H5N1 virus circulating had a high human mortality rate, so it is worrying that we are now starting to see people dying after contact with poultry again.

It’s not just H5 subtypes of bird flu that concern humans. The H10N1 virus was originally isolated from wild birds in South Korea, but has also been reported in samples from China and Mongolia.

Recent research found that these particular virus subtypes may be able to jump to humans after they were found to be pathogenic in laboratory mice and ferrets. The first person who was confirmed to be infected with H10N5 died in China on January 27 2024, but this patient was also suffering from seasonal flu (H3N2). They had been exposed to live poultry which also tested positive for H10N5.

Species already threatened with extinction are among those which have died due to bird flu in the past three years. The first deaths from the virus in mainland Antarctica have just been confirmed in skuas, highlighting a looming threat to penguin colonies whose eggs and chicks skuas prey on. Humboldt penguins have already been killed by the virus in Chile.

A colony of king penguins.
Remote penguin colonies are already threatened by climate change. AndreAnita/Shutterstock

How can we stem this tsunami of H5N1 and other avian influenzas? Completely overhaul poultry production on a global scale. Make farms self-sufficient in rearing eggs and chicks instead of exporting them internationally. The trend towards megafarms containing over a million birds must be stopped in its tracks.

To prevent the worst outcomes for this virus, we must revisit its primary source: the incubator of intensive poultry farms.

Diana Bell does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

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This is the biggest money mistake you’re making during travel

A retail expert talks of some common money mistakes travelers make on their trips.

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Travel is expensive. Despite the explosion of travel demand in the two years since the world opened up from the pandemic, survey after survey shows that financial reasons are the biggest factor keeping some from taking their desired trips.

Airfare, accommodation as well as food and entertainment during the trip have all outpaced inflation over the last four years.

Related: This is why we're still spending an insane amount of money on travel

But while there are multiple tricks and “travel hacks” for finding cheaper plane tickets and accommodation, the biggest financial mistake that leads to blown travel budgets is much smaller and more insidious.

A traveler watches a plane takeoff at an airport gate.

Jeshoots on Unsplash

This is what you should (and shouldn’t) spend your money on while abroad

“When it comes to traveling, it's hard to resist buying items so you can have a piece of that memory at home,” Kristen Gall, a retail expert who heads the financial planning section at points-back platform Rakuten, told Travel + Leisure in an interview. “However, it's important to remember that you don't need every souvenir that catches your eye.”

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According to Gall, souvenirs not only have a tendency to add up in price but also weight which can in turn require one to pay for extra weight or even another suitcase at the airport — over the last two months, airlines like Delta  (DAL) , American Airlines  (AAL)  and JetBlue Airways  (JBLU)  have all followed each other in increasing baggage prices to in some cases as much as $60 for a first bag and $100 for a second one.

While such extras may not seem like a lot compared to the thousands one might have spent on the hotel and ticket, they all have what is sometimes known as a “coffee” or “takeout effect” in which small expenses can lead one to overspend by a large amount.

‘Save up for one special thing rather than a bunch of trinkets…’

“When traveling abroad, I recommend only purchasing items that you can't get back at home, or that are small enough to not impact your luggage weight,” Gall said. “If you’re set on bringing home a souvenir, save up for one special thing, rather than wasting your money on a bunch of trinkets you may not think twice about once you return home.”

Along with the immediate costs, there is also the risk of purchasing things that go to waste when returning home from an international vacation. Alcohol is subject to airlines’ liquid rules while certain types of foods, particularly meat and other animal products, can be confiscated by customs. 

While one incident of losing an expensive bottle of liquor or cheese brought back from a country like France will often make travelers forever careful, those who travel internationally less frequently will often be unaware of specific rules and be forced to part with something they spent money on at the airport.

“It's important to keep in mind that you're going to have to travel back with everything you purchased,” Gall continued. “[…] Be careful when buying food or wine, as it may not make it through customs. Foods like chocolate are typically fine, but items like meat and produce are likely prohibited to come back into the country.

Related: Veteran fund manager picks favorite stocks for 2024

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