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Another challenge is the global supply chain management of APIs. Many pharmaceutical companies rely on outsourcing API production to countries with lower manufacturing costs, like India and China. While this practice can reduce costs, it also exposes companies to risks such as supply disruptions, quality control issues, and geopolitical factors. In recent years, the COVID-19 pandemic underscored these vulnerabilities, prompting many companies to seek local production options or diversify their suppliers.
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Moreover, the active pharma sector is seen as a critical player in global health initiatives. Governments and organizations worldwide have recognized the importance of ensuring access to safe and effective medications. As a result, there is an increasing emphasis on the production of generic drugs, which often rely on off-patent active pharmaceuticals. These generic options not only lower healthcare costs but also enhance accessibility for patients who require ongoing treatment.
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