Supply chain experts warn that Britain is a few weeks away from medicine shortages if the Iran war continues, and drug prices could also rise.
The conflict has disrupted the supply of crucial raw materials such as oil, gas, crop fertiliser and helium – and health essentials could be next, The Guardian reports.
David Weeks, director of supply chain risk management at Moody’s has described the current situation as a "perfect storm".
He said the conflict in the Gulf has led to the closure of the strait of Hormuz, and this has affected the access of Western countries to India, which produces a lot of generic drugs and active pharmaceutical ingredients (APIs).
Generic drugs make up 85 percent of the medications used by the NHS.
The curtailment of services at airports in Dubai, Doha, and Abu Dhabi, and the closure of Hormuz, have affected the shipment of medicines.
They are now taking longer routes, and this is lengthening journey times.
Medicines UK chief executive Mark Samuels said, “The escalating conflict in Iran, and the wider instability across the Middle East, poses a significant risk to future UK medicine supplies.
“While we are not currently seeing exceptional shortages, manufacturers are facing sharp increases in transportation costs, particularly for air freight. Shipping - the primary route for most medicines - is also under strain due to the effective closure of the Strait of Hormuz, creating knock-on pressures across global supply chains.
“Medicine production requires long-term planning, and the current uncertainty makes it increasingly difficult for manufacturers to operate with confidence.
“Off-patent medicines, which account for 85 percent of NHS prescriptions, run on high efficiency and razor-thin margins. Any prolonged crisis that drives up operating costs will disproportionately affect these manufacturers and risks leading to supply shortages or increased costs for the NHS.”
Apart from higher transport costs, the rise in crude oil and natural gas prices affects the cost of petrochemical products such as methanol and ethylene, which are needed to manufacture APIs, the key ingredients of medicines, as well as syringes, vials, tubing, gowns, and goggles.
