Baltic Export, Covid-19, EU – Baltic States, Latvia, Markets and Companies, Medicine

Hmelnickis said that initially, there were problems with supplies from China, but later India, a major supplier, also banned exports of drug ingredients. 

"In Europe, there is a question about our independence. The crisis showed that we are very interconnected, and if there are problems in one particular place, they are felt across the world. This is especially true for the pharmaceutical industry which is a global business, " Hmelnickis said, adding that there are problems not only with the availability of active dosage forms but also intermediary products. 

The Grindex had noted that Latvia too imposed a temporary ban on exports of particular medicines.

Hmelnickis said that  the ongoing debate about the production of active drug substances will change the pharmaceutical market. The U.S., for instance, has been importing large amounts of these products from China, but as the pandemic broke out China, closed its market leaving the U.S. virtually without antibiotics. 

"We need to increase our independence in that respect. Latvia must define its needs," Hmelnickis said.

The Grindex head expects the current debate in the U.S. and Europe to result in drawing up a list of essential products with Europe likely to decide that at least part of them have to be produced in the European Union. "There will also be attempts to diversify the countries from which the active substances are purchased. This is definitely a business opportunity, although this is not an easy one, because the production of active substances requires large investment," Hmelnickis said.