Vaccine remains the primary issue, not vials
We have not yet fully recovered from the shortage of PPE and testing kits. While the entire humanity waits for the arrival of a vaccine to tame Covid-19, the availability of vials to house that vaccine seems to be the latest cause of concern.
According to a recent newspaper report, SCHOTT, the world’s largest maker of specialty glass for vaccine vials, has turned down requests from major pharmaceutical firms to reserve output. Instead, the CEO, Dr Frank Heinricht, would prefer “to keep the door open to give capacity to those who really are successful in the end.”
Regardless of the situation, no supplier of any raw material to any industry can afford to alter production or reserve output in anticipation of an eventuality, however eagerly it may be anticipated.
As industry specialists are aware, a 10 to 20 percent shortage in supplies boosts order flow by about 50 percent. This in turn calls for expensive increase in capacity that can take up to two years. This is a crucial decision especially in the cost-intensive glass tubing and pharma packaging segments. When resources are scarce and the world is facing an extraordinary crisis, this decision becomes even more critical.
Needless panic?
According to estimates, worldwide vaccination will require about 1 billion pieces, which is just 2 percent of the annual demand for borosilicate glass containers for injectable drugs. The world leaders in this category have enough capacity to ramp up and rework processes and schedules to fulfill this requirement on priority. So, while we are having to contend with enough panic on multiple fronts, the fears about vials availability appear to be needless.
There is a definite need for the entire pharmaceutical industry, not just the vial makers, to gear up to serve humanity. Companies are sure to allocate resources as required—if not for commercial gains, to safeguard their reputation.
Maybe this is a good time to aggressively promote open innovation, where companies ought to forget their commercial differences and come together to step up capabilities, if necessary. We have already seen that happening in the production of ventilators, sanitizers, and masks.
When life as we know it is at stake, rather than raise conflicts and stoke panic, it is more prudent to reach out and collaborate across walls.