NEW YORK, Oct. 27 /PRNewswire/ — Global pharmaceutical
outsourcing has become increasingly prevalent, but is creating
a complex and risky supply chain environment that has
pharmaceutical and life sciences executives on high alert,
according to a major study co-sponsored by PwC US and published
today by Axendia, Inc., a life science and healthcare analyst firm.
 In the report, 50 percent of pharmaceutical and life sciences
executives surveyed said they see raw materials sourced outside of
the U.S. as the greatest vulnerability to the supply chain, and 61
percent view contaminated or nonconforming raw materials as the top
threat in the next five years.

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According to the report, titled Achieving Global
Supply Chain Visibility, Control & Collaboration in Life
Sciences: Business Imperative, Regulatory Necessity, the
emerging economies of China, India, Mexico and Brazil are becoming
the most attractive places in which to sell medicines. In the drive
to lower costs, these countries also are playing a more prominent
role in the manufacturing and sourcing process. Yet, outsourcing drug development
to manufacturers in developing nations carries significant
operational risks.  Moreover, it is more difficult to
manufacture and distribute biologics, which are more sensitive to
the elements, than chemical entities.  

Against this backdrop, Axendia’s survey of 112 industry
executives from pharmaceuticals, medical devices, and biotechnology
companies around the globe found:

• Ninety-four percent said global product sales outside of the
  U.S. will be increasing in the next few years, while 78 percent
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