Report: Analyzing Pharmaceutical Operations in Vaccine Development

This report delves into the intricacies of pharmaceutical operations management, particularly in the context of coronavirus vaccine development. It examines the critical decision-making processes pharmaceutical companies face, including high-risk investments due to the uncertainty surrounding emerging diseases and the pressure to reduce time to market (TTM). The report discusses the vaccine development pipeline, emphasizing research, licensure, investment, and market rollout. It highlights key factors delaying TTM, such as regulatory approvals and market authorization processes, and suggests strategies for optimization. Furthermore, the report explores the use of Electronic Data Interchange (EDI) for supply chain management, drawing on the example of Carrefour. It also addresses the challenges of balancing capacity to meet the high demand for vaccines, especially in the face of competition and production limitations, offering insights into strategies for efficient vaccine distribution and production.

Running head: PHARMACEUTICAL OPERATION MANAGEMENT
OPERATIONS MANAGEMENT
Name of the Student:
Name of the University:
Author Note:

1OPERATIONS MANAGEMENT
Referring to Q1 (a)
Vaccines are the most useful to prevent and to cure diseases such as measles, tetanus,
and others (Delany, Rappuoli, & De Gregorio, 2014). The pharmaceutical companies are
attempting to develop and formulate a vaccine for treating coronavirus. Coronavirus disease,
this disease is rapidly spreading in the entire world, and therefore, it has become essential for
developing vaccines for treating and preventing the disease. The pharmaceutical company
needs to make a risky investment decision as it would involve many trial and error sessions
for developing the vaccines. As this disease has newly emerged, there is no vaccine available
in the world. Thus, it may lead to uncertain investments for achieving the desire vaccines.
However, despite the uncertainties, pharmaceutical companies need to develop the vaccines
as the market for this particular vaccine is enormous. Thus, it will help the pharmaceutical
company to set the price of vaccines high enough for covering the cost of vaccines along with
the loss of research and development.
According to Who.int. (2020), the process of developing any vaccines includes
efficient research and discovery, followed by taking licensure, making enough investments,
launching of the vaccines, and finally rolling out the vaccines to the market.
Figure: Pipeline for developing vaccines
Source: (Who.int, 2020)
The above figure is a short flow diagram that represents the process that the pharmaceutical
company needs to implement in developing vaccines for coronavirus.
Discover
y and
research
Clinical
Develop
ment
Taking
Licensu
re
Capital
or
investm
ent
Manufa
cturing
Distribution
to market
Procur
ement

2OPERATIONS MANAGEMENT
Referring to Q1 (b)
Time to Market (TTM) is referred to the total time required for delivering vaccines to
the market (Hansen & Grunow, 2015). In this particular case, coronavirus has outbreak a
huge terror in the mind of people in the world. This disease is spreading at a considerable
rate, and therefore, it is necessary to reduce the TTM for developing such vaccines that would
bring benefits to the world in both the aspect of economics and social standpoint. This disease
has a great impact on the economy of the world. Many central banks in multiple countries
have cut down their interest rates to hold their economy, and many airlines were affected due
to the ban on travel in many countries. On the other hand, it is also crucial to develop
vaccines to society as this disease has brought terror to society. Many people are dying as
there is no specific treatment or vaccines available in the world.
The major key elements that cause the delay in TTM are approval and authorisation.
In Saudi Arabia, the launch of new vaccines or drugs is approved by the Saudi Food and
Drug Authority (SFDA) (Sfda.gov.sa, 2020). Further, for launching in multiple countries, it
needs approval from numerous central authorities. The second element is market
authorisation, here reimbursement settlement, price negotiation, labels, and other activities
are authorised by the local authorities of the market. For reducing the TTM, the company
should launch the vaccines in multiple sets that would help in reducing the time. As the one
set would launch in the market in the meanwhile, the next set should undergo the process of
approval and authorisation.
Referring to Q2 (a)
Carrefour is famous for a global retailer, and it is operated worldwide. Besides,
Carrefour is also successful in managing and administering the complex, challenging supply
chain. After critically reviewing and analysing their supply chain management, it has been

3OPERATIONS MANAGEMENT
found that they use numerous tools for the continuous evolution of strategies (Sandybayev,
2018). The best tool of the supply chain that can be implemented in the crisis of COVID-19 is
Electronic data interchange (EDI). This tool has numerous benefits, and it helps in
administering along with controlling the operation of the company globally (Hwang & Lee,
2016). The workflow of each operation can be controlled easily by reducing human errors.
The cost has been reduced by 80 percent due to lower costs in printing, documenting,
searching, and storing.
Coronavirus outbreak is huge, and for operating the development of vaccines, the
company needs to reduce human errors, increase transparency, and enhanced logistics. For
achieving these elements, EDI plays a significant role as it helps in digitizing the process of
the supply chain. As the number of vaccines seekers is high, EDI would help in better
estimation of several vaccines needed and help in the continuous replenishment of stock.
Referring to Q2 (b)
Balancing the capacity refers to meeting the demand with adequate supply or capacity
of the organisation (Hugos, 2018). In this case of the ever-evolving coronavirus outbreak, the
demand for vaccines is very high. The reason for the high demand is due to the non-existence
of vaccines or drugs for treating the patients infected by the coronavirus. The major factors or
elements that hinder in delivering of the vaccines to the right people at the right time are non-
availability of the same vaccines, and production should be in bulk amount, larger production
facilities, more extensive inventory facilities, lack of adequate knowledge of the virus as it is
newly discovered, regulatory approval, and hostile competition (Novel, 2020).
The vaccines have not yet developed; however, if they do, then the company would
face hostile competition. Since the population who are seeking and demanding the vaccines
are high, and the company needs to produce the vaccines in a larger amount. It should be

4OPERATIONS MANAGEMENT
launch in multiple sets to reduce the TTM and also to easy regulatory procedures. Initially,
the company should focus on delivering the vaccines to various hospitals and healthcare
settings where there are infected patients. And, the production of vaccines should take place
continuously to meet the higher demands. Every company or organisation has a specific
capacity in delivering their services or products to the market. No pharmaceutical company
can produce the vaccines for treating or delivering to every patient infected by COVID-19.
Collaboration with multiple companies would help them in providing an adequate number of
products by increasing as it would result in increased capacity with cooperation. Thus, taking
these measures and steps would help in providing right vaccines to right person at right time.

5OPERATIONS MANAGEMENT
References
Delany, I., Rappuoli, R., & De Gregorio, E. (2014). Vaccines for the 21st century. EMBO
molecular medicine, 6(6), 708-720.
Hansen, K. R. N., & Grunow, M. (2015). Planning operations before market launch for
balancing time-to-market and risks in pharmaceutical supply chains. International
Journal of Production Economics, 161, 129-139.
Hugos, M. H. (2018). Essentials of supply chain management. John Wiley & Sons.
Hwang, K. M., & Lee, S. J. (2016). How does electronic data interchange (EDI) affect the
competitiveness of a firm’s supply chain management?. Journal of Marketing
Thought, 3(2), 13-19.
Novel, C. P. E. R. E. (2020). The epidemiological characteristics of an outbreak of 2019
novel coronavirus diseases (COVID-19) in China. Zhonghua liu xing bing xue za
zhi= Zhonghua liuxingbingxue zazhi, 41(2), 145.
Sandybayev, A. (2018). How Carrefour Revolutionizing Supply Chain Management: A Case
from the United Arab Emirates. The Journal of Eurasian Research, 4. 210-220.
Sfda.gov.sa. (2020). Saudi Food and Drug Authority. Retrieved 26 March 2020, from
https://www.sfda.gov.sa/En/Pages/default.aspx
Who.int. (2020). Retrieved 26 March 2020, from
https://www.who.int/intellectualproperty/news/en/SubmissionBarder1.pdf