With conflict in the Middle East bringing on a global energy market squeeze, one major pharma supplier is raising prices across its excipients and active pharmaceutical ingredient (API) portfolio.<\/p>\n
Global chemical production company BASF Pharma Solutions is increasing its prices by up to 20% for its excipients and a select array of its APIs, the company announced in a Monday press release<\/a>. The price change will take effect immediately or as BASF\u2019s existing contracts allow.\u00a0<\/p>\n \u201cThe adjustment supports BASF\u2019s commitment to maintaining a reliable supply of high-quality products across its portfolio amid rising global energy and raw material costs,\u201d the company said.\u00a0<\/p>\n BASF will continue to monitor market conditions and may make future adjustments as needed, it noted. Excipients are inactive ingredients that play a crucial role in drug formulations along with APIs.\u00a0<\/p>\n A month into the U.S. and Israel\u2019s war with Iran, rising energy costs<\/a> have touched many industries. Much of the supply concerns revolve around the effective closure<\/a> of the Strait of Hormuz, a key passageway that is responsible for the flow of about 20% of the world\u2019s crude oil and natural gas. Oil prices have risen sharply since the initial attack on Iran in late February.<\/p>\n Rising oil prices could affect the supply chain of \u201cmost global manufacturers,\u201d Aaron Lober, manufacturing intelligence lead at AI production platform developer\u00a0CADDi<\/a>, told Fierce Pharma in a statement earlier this month.\u00a0<\/p>\n While \u201cvery few\u201d manufactured goods pass through the Strait of Hormuz, Lober said, the bigger issue becomes \u201chow rising oil prices ripple through transportation and energy costs across the entire system.\u201d<\/p>\n Several large global pharmas have said<\/a> that they are keeping an eye on their employees and medicine supply amid the evolving conflict. Executives at some Western drugmakers, speaking anonymously, previously told Reuters<\/a> that they are looking at alternative routes into the Gulf and trucking some drugs over land rather than using sea lanes.<\/p>\n While the Middle East is only responsible for 0.3% of the world\u2019s API production, a few select drugs stand to be particularly affected, according to a recent report<\/a> from The Hill. For example, Jordan produces about half of the global supply of amoxicillin oral suspension and about half of the world\u2019s API for fast-acting anesthetic\u00a0etomidate. Further, 73% of API for benzodiazepine antagonist flumazenil is made between Jordan and Israel, according to the report.<\/p>\n If the situation continues, Gerren McHam, VP of external affairs at the API Innovation Center, warned The Hill that supply chain lead times, transportation costs and key starting materials could be affected.\u00a0<\/p>\n In England, the head of the National Health Service (NHS), Sir Jim Mackey, is \u201creally worried\u201d about medical supplies and shortages, telling<\/a> LBC radio show host Nick Ferrari that \u201ceverything\u2019s at risk.\u201d<\/p>\n