Leading European Manufacturer Augments Paracetamol Production

The consequences of the Covid issue on global medicine supply chains have rekindled discussions about international trade and a potential shortage of medications and generics, including Paracetamol in Europe. Inflation that cannot be controlled will continue to be a major worry for pharmaceutical businesses globally in 2023. While the severity of the effects of underlying inflation is anticipated to decrease gradually over the course of the year, there are indications that inflation pressure will be more persistent than originally anticipated. This could lead to pharmaceutical companies that make Paracetamol having to contend for longer than current baseline projections with semi-permanently increased input prices and other interconnected issues. 

There have been long worries about the Paracetamol supply deficit in France. The push to slow price increases will continue to be a major worry throughout Europe, where similar echoes can also be heard. However, the likelihood of a Paracetamol shortage has sharply increased, reviving the debate over potential solutions. The Doliprane brand is marketed by Sanofi, which is the leading provider of Paracetamol in France and throughout Europe. To relieve strain on the supply of Paracetamol to high street pharmacies, ANSM (French National Agency for the Safety of Medicines and Health Products) imposed a temporary restriction on online Paracetamol sales in December 2022.

Around 60% of APIs, including Paracetamol, are produced in China or India worldwide. 18% of generic drugs are manufactured worldwide, the majority of which are exported, and India alone is responsible. In addition to being a significant manufacturing hub, China also provides 70% of the APIs for the generics market in India. The Federal Association of Pharmaceutical Manufacturers (BAH) in Germany has stated that " one must think about incentives to enhance the European Union as a site for the pharmaceutical industry and bring the manufacturing of APIs and pharmaceuticals back to the European Union. However, there is very little room to accommodate major price rises due to the rigidity of European pricing and reimbursement procedures.

The problem first surfaced in the summer and primarily affects pediatric Paracetamol products, including oral suspensions and suppositories. This rise will have definitely aided sales growth in Sanofi's Cough & Cold category in Q4 2022 in Paracetamol output in Europe. Although Sanofi was facing slower sales across categories in several areas as macroeconomic headwinds started to dampen demand, the company's head of consumer healthcare said in October as the company announced its Q3 results. He stated that there had been "growth moderation" recently. This was caused by "a market exhibiting signals of the tighter economy and inflationary pressure," in addition to the fact that there was a high base of comparison with the prior-year period.