Novo Nordisk and Eli Lilly, whose obesity drugs are some of the most in-demand drugs in the US, have drafted plans to avoid supply disruptions from seaport strikes across the East and Gulf Coasts, the companies confirmed to Endpoints News.
The port strikes have the potential to impact medicine and medical device supply, the US Department of Health and Human Services warned on Tuesday. Around 50,000 workers have gone on strike across both US ports, according to CNBC.
Huge demand for the companies’ GLP-1 weight loss drugs has left the products in shortage in the US. While Lilly’s drug tirzepatide is now officially out of shortage, Novo’s still remains on the FDA’s shortage list.
The companies declined to say which drugs could be impacted by shipping disruptions, and both companies sell dozens of products. But supply chains for pharma companies tend to be global, with key ingredients and other components manufactured around the world.
Novo and Lilly both have manufacturing footprints on the East Coast of the US. Novo is having to ship all its US products via aircraft to avoid any supply chain issues, the company confirmed to Endpoints.
Further, Novo is also airfreighting all its raw materials, drug components and active pharmaceutical ingredients from its facilities in North Carolina and New Hampshire due to the seaport strikes, the spokesperson added.
Novo has at least three facilities in North Carolina, and is in the process of constructing a fourth, which is anticipated to be finished between 2027 and 2029. As for New Hampshire, Novo has one site located in West Lebanon, which focuses on making hemophilia and growth hormone disorder products.
However, the Danish pharma anticipates the impact from the strikes will only be “minimal and manageable,” the Novo spokesperson said.
Meanwhile, Lilly also has “multiple contingencies in place to ensure a reliable supply of medicines,” a company spokesperson told Endpoints. The Indianapolis-headquartered company is also working with partners to reduce any supply chain risks caused by the port strikes, the company added. Lilly declined to comment if the strikes would cause any delays in shipments and drug supply.
In the eastern US, Lilly has sites in Raleigh-Durham’s Research Triangle Park, NC, and Concord, NC.
Editor’s note: This story has been corrected to remove an erroneous mention of Lilly sites on the West Coast.