  {"id":26188,"date":"2017-11-15T21:58:32","date_gmt":"2017-11-16T02:58:32","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/a-perfect-storm-when-hurricanes-hit-the-medicine-supply\/"},"modified":"2017-11-15T21:58:32","modified_gmt":"2017-11-16T02:58:32","slug":"a-perfect-storm-when-hurricanes-hit-the-medicine-supply","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/a-perfect-storm-when-hurricanes-hit-the-medicine-supply\/","title":{"rendered":"A Perfect Storm: When Hurricanes Hit the Medicine Supply"},"content":{"rendered":"<p><strong>Hurricane Maria: a pharmaceutical crisis<\/strong><\/p>\n<p>On September 20<sup>th<\/sup>, Hurricane Maria slammed into Puerto Rico. The storm decimated Puerto Rico\u2019s infrastructure, causing billions of dollars in damage and knocking out the power supply for months.<a href=\"#_ftn1\" name=\"_ftnref1\">[1]<\/a><\/p>\n<p>While Maria was singularly devastating in the Caribbean, its ripples extend far beyond the Atlantic. Puerto Rico is home to 25% of the United States\u2019 pharmaceutical exports, due in part to a tax subsidy that ended in 2006.<a href=\"#_ftn2\" name=\"_ftnref2\">[2]<\/a><sup><a href=\"#_ftn3\" name=\"_ftnref3\">[3]<\/a><\/sup> Today, the U.S. Food and Drug Administration (FDA) fears that 30 drugs and 10 biological devices, which are produced primarily or exclusively in Puerto Rico, could see national shortages as the island struggles to restart its economy.<a href=\"#_ftn4\" name=\"_ftnref4\">[4]<\/a><\/p>\n<p>Pharmaceutical manufacturers in Puerto Rico now risk running out of essential supplies, including the generator fuel powering their factories and refrigerators. More critically, they are still struggling to locate employees, who are grappling with catastrophic personal losses from the hurricane.<a href=\"#_ftn5\" name=\"_ftnref5\">[5]<\/a><\/p>\n<p>Could Maria be a sign of even worse to come? Climate science gives reason to worry. On the one hand, scientists are uncertain whether climate change will cause the total <em>number <\/em>of hurricanes to rise or fall. However, warmer oceanwaters and higher sea levels increase the destructive power of hurricanes that do occur. This means storms with greater rainfall, larger sea surges, longer lifespans, and higher likelihood of making landfall.<a href=\"#_ftn6\" name=\"_ftnref6\">[6]<\/a> The supply of essential medicines could increasingly be at risk.<\/p>\n<p><strong>The FDA responds<\/strong><\/p>\n<p>Fearing immediate shortages of critical medical supplies, the FDA is racing to stem the bleeding. It has launched a task force to oversee storm-related supply gaps and deployed teams to monitor each of the 40 at-risk products.<a href=\"#_ftn7\" name=\"_ftnref7\">[7]<\/a><a href=\"#_ftn8\" name=\"_ftnref8\">[8]<\/a> The agency is coordinating with companies and government authorities to facilitate distribution of fuel, medical-grade gases, and other critical supplies. It is also playing a coordination and advisory role to address logistical and transport challenges facing the affected companies.<\/p>\n<p>In the medium term, the FDA is working with federal and local governments to ensure that critical plants, which are the primary producers of at-risk medical products, are prioritized as Puerto Rico rebuilds its power grid.<a href=\"#_ftn9\" name=\"_ftnref9\">[9]<\/a> The FDA is also providing companies expertise as they plan for similar critical risks in the future.<a href=\"#_ftn10\" name=\"_ftnref10\">[10]<\/a><\/p>\n<p><strong>Planning for the risks<\/strong><\/p>\n<p>Moving forward, the FDA should revamp its contingency plans to account for the growing hazard of extreme weather events. The dangers include not only fiercer hurricanes but also more severe droughts, flooding, and rainfall, which could impact producers up and down the supply chain.<\/p>\n<p>The FDA should start by conducting a thorough climate-risk analysis across the value chain. Where else are operations concentrated in geographies vulnerable to climate change? This analysis should span not only the production of final goods but also the supply and warehousing of intermediate components.<\/p>\n<p>For products manufactured in high-risk geographies, the FDA can bolster resilience by enhancing emergency readiness, raising inventory stockpiles, and promoting geographic diversification.<\/p>\n<ul>\n<li><strong>Emergency readiness: <\/strong>The FDA should work with firms to ensure that critical factories meet higher standards for infrastructural soundness, emergency supply stockpiles, and response plans. Superior planning to provide employees immediate emergency support, for example, might have helped firms recover more quickly from Hurricane Maria.<\/li>\n<li><strong>Inventory stockpiles: <\/strong>The FDA can encourage firms, hospitals, and government agencies to expand stockpiles of the medical supplies most vulnerable to extreme weather events. While inventory imposes space, refrigeration, and wastage costs, larger stockpiles will increasingly be justified as climate risks grow.<\/li>\n<li><strong>Geographic diversification: <\/strong>Over the long-term, the FDA can encourage firms and government agencies to avoid clustering critical production in vulnerable geographies. Federal tax policies led to the pharmaceutical buildup in Puerto Rico; regulatory and tax policies can similarly facilitate geographic diversification of the supply chain in the future. This strategy, however, should be pursued with care. While diversification of critical supplies is important, the U.S. government also has an interest in sustaining Puerto Rico\u2019s pharmaceutical industry, which powers 30% of the island\u2019s GDP.<a href=\"#_ftn11\" name=\"_ftnref11\">[11]<\/a><\/li>\n<\/ul>\n<p>Moving forward, the FDA will have to answer some difficult questions. Given uncertainty around the impacts of climate change, how much more should the pharmaceutical industry invest in emergency readiness? To what extent should the FDA advocate for reinvestment in Puerto Rico\u2019s existing infrastructure versus moving production elsewhere? The agency\u2019s leadership will need to answer these questions carefully \u2013 and quickly. It\u2019s only a matter of time before the next wave hits.<\/p>\n<p>(717 words)<strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/strong><\/p>\n<p><a href=\"#_ftnref1\" name=\"_ftn1\">[1]<\/a> Brian Resnick and Eliza Barclay, \u201cThe Danger in Puerto Rico\u2019s Widespread Power Outages,\u201d Vox.com, October 16, 2017, https:\/\/volume.vox-cdn.com\/embed\/b15d69e1b.<\/p>\n<p><a href=\"#_ftnref2\" name=\"_ftn2\">[2]<\/a> Nathan Bomey, \u201cHurricane Maria Halts Crucial Drug Manufacturing in Puerto Rico, May Spur Shortages,\u201d USA TODAY, September 22, 2017, https:\/\/www.usatoday.com\/story\/money\/2017\/09\/22\/hurricane-maria-pharmaceutical-industry-puerto-rico\/692752001\/.<\/p>\n<p><a href=\"#_ftnref3\" name=\"_ftn3\">[3]<\/a> Aaron Schrank, \u201cWhat Will Be Hurricane Maria\u2019s Impact on Puerto Rico\u2019s Drug Industry?,\u201d Marketplace, September 25, 2017, http:\/\/www.marketplace.org\/2017\/09\/25\/economy\/weather-economy\/puerto-rico-manufactures-quarter-all-us-exported-drugs-what-will.<\/p>\n<p><a href=\"#_ftnref4\" name=\"_ftn4\">[4]<\/a> \u201cFDA Updates Drug Manufacturing Situation in Puerto Rico,\u201d DCAT Value Chain Insights, November 7, 2017, https:\/\/www.dcatvci.org\/pharma-news\/4772-fda-issues-statement-on-role-of-medical-product-manufacturing-in-puerto-rico.<\/p>\n<p><a href=\"#_ftnref5\" name=\"_ftn5\">[5]<\/a> Bomey, \u201cHurricane Maria Halts Crucial Drug Manufacturing in Puerto Rico, May Spur Shortages.\u201d<\/p>\n<p><a href=\"#_ftnref6\" name=\"_ftn6\">[6]<\/a> \u201cWhat Is the Link between Hurricanes and Global Warming?,\u201d Skeptical Science, accessed November 16, 2017, https:\/\/www.skepticalscience.com\/hurricanes-global-warming.htm.<\/p>\n<p><a href=\"#_ftnref7\" name=\"_ftn7\">[7]<\/a> \u201cFDA Updates Drug Manufacturing Situation in Puerto Rico.\u201d<\/p>\n<p><a href=\"#_ftnref8\" name=\"_ftn8\">[8]<\/a> Kirsten Korosec, \u201cFDA: Puerto Rico Faces \u2018Critical\u2019 Drug Shortages After Hurricane Maria Devastation,\u201d Fortune, September 26, 2017, http:\/\/fortune.com\/2017\/09\/26\/puerto-rico-drug-shortages-fda\/.<\/p>\n<p><a href=\"#_ftnref9\" name=\"_ftn9\">[9]<\/a> \u201cFDA Updates Drug Manufacturing Situation in Puerto Rico.\u201d<\/p>\n<p><a href=\"#_ftnref10\" name=\"_ftn10\">[10]<\/a> Korosec, \u201cFDA.\u201d<\/p>\n<p><a href=\"#_ftnref11\" name=\"_ftn11\">[11]<\/a> \u201cFDA Updates Drug Manufacturing Situation in Puerto Rico.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On Sept. 20th, Hurricane Maria slammed into Puerto Rico, disrupting a major pharmaceutical manufacturing base. If the FDA is to prevent future medicine shortages in the face of climate change, it must heed the warning.<\/p>\n","protected":false},"author":9902,"featured_media":26189,"comment_status":"open","ping_status":"closed","template":"","categories":[1218],"class_list":["post-26188","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-climate-change","hck-taxonomy-organization-fda","hck-taxonomy-industry-pharmaceutical","hck-taxonomy-country-united-states-minor-outlying-islands"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/rc-tom-challenge-2017\/","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>A Perfect Storm: When Hurricanes Hit the Medicine Supply - Technology and Operations Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/a-perfect-storm-when-hurricanes-hit-the-medicine-supply\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A Perfect Storm: When Hurricanes Hit the Medicine Supply - Technology and Operations Management\" \/>\n<meta property=\"og:description\" content=\"On Sept. 20th, Hurricane Maria slammed into Puerto Rico, disrupting a major pharmaceutical manufacturing base. 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