A port strike impacting nearly half of all trade coming into the U.S. has caused significant disruptions, with critical medical devices and drug components for drugs like Ozempic, Wegovy, Mounjaro, and Zepbound from Novo Nordisk and Eli Lilly being affected. The delivery mechanisms for insulin and weight-loss drugs rely heavily on East Coast ports for incoming trade, with Novo Nordisk importing a substantial amount of pharmaceuticals and injection devices through the Port of Norfolk. Despite the strike, both Novo Nordisk and Eli Lilly have mitigation plans in place to minimize production disruptions due to seaport strikes by shipping products via airfreight.
The strike has come at a critical time for the drug sector, as inventory replenishment for the industry is typically just in time. Approximately 48% of the active pharmaceutical ingredients (APIs) used in the U.S. are imported from India, with some of these APIs being critical components for the manufacturing of weight-loss drugs like Ozempic. Eli Lilly imports APIs from Swiss manufacturer Corden Pharma to produce tirzepatide for Mounjaro and Zepbound, while Novo Nordisk imports APIs for Ozempic and Wegovy, with semaglutide being a key component for both drugs.
The risk to medical supplies is being monitored by the Biden administration and state governments, with preliminary assessments indicating limited immediate impacts across medicines, medical devices, and infant formula for consumers. The East Coast ports are also crucial gateways for generic medicine made in India. The industry is facing further challenges due to the ripple effects of Hurricane Helene, which damaged a key IV fluids facility in North Carolina. This has raised concerns about potential shortages and the impact on hospitals and patient care.
Gov. Kathy Hochul of New York has reassured that efforts are being made to ensure essential products are available in grocery stores and medical facilities in the midst of the strike. However, disaster relief agencies and critical infrastructure providers are working to mitigate the impact on critical goods, including high-value pharmaceuticals and medical supplies. The Alliance for Chemical Distribution has warned that the strike will result in severe delays, reroutes, and greater uncertainties in the delivery of essential products at U.S. ports, highlighting the importance of addressing supply chain disruptions in a timely manner.
The strike may impact the importation and distribution of medications like Ozempic, leading to supply chain disruptions, increased shipping costs, inventory shortages of APIs, and production delays. While there are other IV fluids manufacturers in the market, it is unlikely they will be able to make up for the supply shortage in the short term, potentially impacting patients and healthcare facilities. The strike serves as a reminder of the vulnerability of the healthcare industry supply chain and the importance of ensuring the timely availability of critical medications and medical supplies. Efforts are being made to address potential impacts on consumers and assess vulnerabilities to limit disruptions in the supply chain.
