Industrial policy to reshape global health product value chains over five years

Policy reaches to extend from raw materials to procurement.

Industrial policy is set to play a larger role across the global health product value chain over the next five years, influencing activities from raw material sourcing to public procurement of pharmaceuticals and medical devices, according to a BMI report.

The report said governments in major markets, including the US, the European Union and China, are increasingly integrating industrial policy into healthcare planning, with greater emphasis placed on supply chain security and resilience alongside cost and efficiency considerations.

Policy-driven changes are expected to affect how global supply networks are organised, with pharmaceutical and medical device companies adjusting sourcing strategies and manufacturing footprints to align with evolving government priorities, the report said. 

Meanwhile, active pharmaceutical ingredient value chains are identified as amongst the most exposed segments due to their concentration in a limited number of countries.

Whilst branded pharmaceutical products are expected to remain geographically dispersed, BMI said industrial policy will increasingly influence decisions on where health products are produced and procured, shaping future sourcing, manufacturing and public purchasing frameworks over the medium term.