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Furthermore, geopolitical tensions and trade disputes can pose risks to the stability of the supply chain. The reliance on a single country for essential pharmaceutical components can create vulnerabilities, especially in times of crisis. Diversification of supply sources and strategic partnerships are increasingly being explored by companies to mitigate these risks.
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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