Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Sanofi, Novartis latest to stockpile drugs in case of no-deal Brexit

Published 08/01/2018, 09:38 AM
Updated 08/01/2018, 09:38 AM
© Reuters. FILE PHOTO: The logo of Sanofi is pictured during the Viva Tech start-up and technology summit in Paris

PARIS/ZURICH/LONDON (Reuters) - Sanofi (PA:SASY) and Novartis (S:NOVN) said on Wednesday they planned to increase stockpiles of medicines Britain in preparation for potential disruption if the UK crashes out of the European Union without a deal.

The move follows similar action by AstraZeneca (L:AZN), which said last month it would increase stockpiles of drugs that could be affected by Brexit by around 20 percent.

Roche (S:ROG), the world's biggest maker of cancer medicines, also said it was taking "appropriate action" to review its stock levels in order to protect supplies to patients.

Britain's largest drugmaker, GlaxoSmithKline (L:GSK), said last week it was taking steps to secure the supply of its medicines and vaccines ahead of the UK's departure from the EU, without going into details.

Supplies of thousands of medicines are at risk of disruption if Britain leaves the EU without a deal, forcing manufacturers to prepare duplicate product testing and licensing arrangements to ensure their drugs stay on the market.

More than 2,600 drugs have some stage of manufacture in Britain and 45 million patient packs are supplied from the UK to other European countries each month, while another 37 million flow in the opposite direction, industry figures show.

Leading drugmakers have long been vocal in their concerns about Brexit and the need for the pharmaceuticals sector to stay within the European regulatory system.

British lawmakers have also called for an agreement that allows the country to have continued participation in the European medicines regulatory framework, but it remains unclear how this will play out in the broader EU negotiations.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Sanofi said it was confident its stockpiling measures would ensure British patients had access to its treatments after Britain leaves the EU, regardless of whether a deal over its future relations with the bloc is in place.

"The uncertainty in the Brexit negotiations means that Sanofi has always been planning for a no deal scenario," a spokesman with the French drugmaker said in an emailed statement.

"We have made arrangements for additional warehouse capacity in order to stockpile our products in the UK and increase UK-based resources to prepare for any changes to customs or regulatory processes."

Novartis said it planned to hold increased inventories in Britain across its portfolio of medicines from both Novartis itself and Sandoz, the Swiss company's generic drugs division.

"We have apprised officials and ministers of our preparedness plans and status, including plans to increase our UK inventory holding," Novartis said.

The European Medicines Agency has warned drugmakers they needed to be ready for a possible hard Brexit in 2019. It has also expressed "serious concerns" over the availability of some 108 medicines that are manufactured exclusively in the UK.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.