Sanofi says China vaccine rules led to logistics overhaul

An article by FiercePharma
August 3, 2016

Sanofi ($SNY) provided insight into the logistics hurdles faced by vaccine makers in China after distribution and sales rule changes made in response to illegal vaccine sales.

The changes implemented recently--which were rooted in the fact agents did not adhere to storage and transport protocols--have led to shortages of vaccines at clinics in China. Beyond that, they've also led to a scramble by several companies in the space, domestic and foreign, to get the infrastructure in place previously handled by third parties.

David Loew, executive vice president for vaccines unit Sanofi Pasteur, told analysts on the July 29 earnings call that work is underway. He said it may take until the end of the year until the pieces are put in place for Sanofi Pasteur, which has an important pediatric vaccine business in China.

"There is now regulation that the manufacturers need to deliver directly to 200 points of central process control in China," Loew said.

"We are setting up this logistical chain, and we anticipate that this unprecedented impact is going to last probably four to 6 months. After that, we see China coming back to normal again."

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