HURRICANE LEAVES DRUG MAKERS IN A LURCH
Pharmaceutical shortages a possibility as work comes to a halt in Puerto Rico
Puerto Rico’s pharmaceutical industry was brought to a halt after Hurricane Maria devastated the island. Drug companies ranging from Eli Lilly to AstraZeneca rushed to assess damage and braced for the possibility of months of downtime.
The catastrophic storm, which wiped out electricity for the entire island, raises the prospect of short-term drug shortages if the industry can’t quickly and temporarily shift manufacturing capacity off the U.S. territory.
Many, if not all, of the nearly 50 pharmaceutical plants on the island are effectively idled. Power isn’t likely to be restored to the island for three to six months.
Although most factories run by global pharmaceutical companies have backup power generation, many employees are unavailable to help resume manufacturing because they face calamity in their personal lives.
“Companies are looking at what their production plans will be and what redundancies are in place,” said Nicolette Louissaint, president of Healthcare Ready, a non-profit group that addresses emergency supply chain crises during the hurricane season. “They’re beginning to look at how to best ensure there’s continuity of operations.”
Pharmaceuticals represented 72% of Puerto Rico’s 2016 exports, valued at $14.5 billion, according to the U.S. Bureau of Labor Statistics.
The Food and Drug Administration had no immediate com-
Pharmaceuticals represented 72% of Puerto Rico’s 2016 exports, valued at $14.5 billion, according to the U.S. Bureau of Labor Statistics.
ment on whether any drug shortages could occur.
Jennifer Dooren, FDA’s acting deputy director of operations, said the agency coordinated with pharmaceutical companies before the storm “to evaluate the potential.”
“In the aftermath of the storm, we continue to work closely with pharmaceutical companies with manufacturing facilities located in Puerto Rico to prevent shortages of medically necessary drug products,” she said in an email.
The phone line at the Pharmaceutical Industry Association of Puerto Rico was not working Friday, and the organization’s president could not be reached for comment.
The island’s pharmaceutical sector was in a slow decline after it lost federal tax benefits that were officially phased out in 2006.
Puerto Rico filed for the equivalent of federal bankruptcy protection this year as years of compounding debts, population loss, high taxes, private-sector declines and bureaucratic inertia piled up.
The island’s financial crisis could deepen if Maria leaves a long-term mark on the pharmaceutical sector, according to S&P Global Ratings Puerto Rico analyst Dave Hitchcock. “It’s a big concern,” he said.
Several major drug companies confirmed that their operations have been disrupted:
Eli Lilly: The Indianapolisbased company suspended “normal manufacturing operations” at its two Puerto Rico plants “as we evaluate the status of the island’s infrastructure and the status of our employees,” spokesperson Tamara Hull said in an email.
On-site generators keep power flowing. “We are still accounting for all employees, which is a slow process due to power and communications loss on the island,” Hull said.
The company “follows emergency procedures that enable us to maintain adequate inventory at our manufacturing sites around the world to ensure a reliable supply of medicine for patients,” she said.
AstraZeneca: The U.K. company’s plant in Canovanas, Puerto Rico, halted production, though it has backup power available.
“Much of our efforts to resume full operations are dependent on several factors, including the health and safety of our employees in their time of need, the restoration of electricity to the island, as well as the re-opening of ports and other travel resources,” spokeswoman Alexandra Engel said in an email.
It’s too “early to understand” whether the site was significantly damaged, she said.
Despite the storm, the company does not anticipate any drug supply disruptions, Engel said. The company has 250 employees on the island.
Johnson & Johnson: The New Brunswick, N.J.-based health giant did not respond to a request for details on the status of its operations. The company said in a statement, “Our preliminary assessment is that our physical facilities fared very well, given the magnitude of the storm.”
“We are partnering with local and federal authorities to monitor the state of the infrastructure, and we will continue to assess the situation,” J&J said, adding that its employees’ safety was its top priority.
Abbvie, Pfizer, Novartis, Merck, Amgen and Bristol
Myers Squibb: Representatives at these companies did not immediately respond to requests seeking comment. GlaxoSmithKline declined to comment.