85% of supply professionals predict coronavirus will interrupt API supply chain

As the coronavirus spreads through China — which produces 13 percent of the active pharmaceutical ingredients used in the U.S. — 85 percent of supply professionals expect supply chain interruptions, according to a report by Kemiex. 

Kemiex, a wholesaler of APIs and other raw materials, surveyed 97 life sciences professionals about the impact the coronavirus will have on trade. 

Thirty-five percent said they expect it to have a high impact; 50 percent expect a low impact; and 15 percent expect no impact. 

The experts predicted that orders planned for the first quarter with delivery in the second quarter will be most affected by the coronavirus. Only a minority of respondents expect the disruptions to last beyond this year. 

The biggest impact stems from the extended Chinese New Year holidays and delayed production starts, the experts said. Further restrictions on transport and travel are expected to cause more interruptions. 

The experts said only select types of APIs, such as amino acids and certain vitamins, will likely be affected. 

Read the full report here.

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