Here’s What You Need to Know:
- The PwC 25th Annual Global CEO Survey showed that geopolitical conflicts significantly threaten global growth, with 71% of CEOs saying they could inhibit business operations.
- Such conflicts can cause operating challenges for companies, particularly those delivering goods in conflict zones, such as pharmaceutical companies.
- Pharmaceutical companies should conduct thorough risk assessments and due diligence before deciding to launch treatments in conflict areas, weighing the potential benefits against the challenges.
- Where sanctions are in place, firms must consider potential financial restrictions, inability to supply medicines, and reputational risks.
- Companies already operating in conflict zones should focus on the safety of local employees and partners and prioritize the delivery of essential medicines.
- To mitigate risks, firms should develop flexible strategies, diversify supply chains, consider local manufacturing, and partner with NGOs, health agencies, or other organizations.
- Understanding each country’s unique compliance guidelines and monitoring said guidelines closely is crucial, especially in conflict-affected regions where policies may be less established or change frequently.
- Unprepared entry into an unstable or unfamiliar market can carry significant financial and operational risks, including potential losses due to unforeseen challenges, regulatory penalties, and reputational damage.
- Companies are increasingly collaborating with regional affiliates for marketing, compliance, pricing, and distribution to reduce these risks and increase the probability of success in any geopolitical environment.
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[Source: The Pharma Letter, August 17th, 2023]