Supply Security

We offer security of supply by:

  1. Consistently delivering product on-time, within specifications
  2. Observing cGMP compliance with a track record spanning decades
  3. Minimizing business continuity risks, including adherence to the highest European HSE standards

We deliver on our promises to customers by:

  1. Keeping adequate stock of products, intermediates and raw materials
  2. Having robust planning for production and long-term capacity
  3. Designing and validating production processes to achieve flexibility and redundancy where possible
  4. Qualifying multiple suppliers of critical materials where possible, preferably across regions

Continuity is the core of our strategy. Although we have grown and innovated significantly over the course of our history, we have always done this gradually with limited risks and with close attention to all the people involved.

Most of our products are well established. Our extensive experience has enabled us to optimize processes for quality and efficiency.

Most of the equipment in our plant is multi-purpose. Many multi-step processes are executed in separate campaigns with stock of intermediates. This arrangement allows for extra flexibility and supply security compared to dedicated and integrated production lines, which are more common in the production of Active Pharmaceutical Ingredients.

Because our organisation is small and agile, we can adjust planning and execute projects for changes in processes and equipment relatively quickly, without compromising on quality or HSE requirements.

When qualifying suppliers of critical raw materials, we focus on their quality system and the potential impact on the quality of our products. However, we also evaluate how suppliers perform in Health, Safety and Environment and we assess business continuity risks. Our approach is to evaluate risks across the supply chain.

COVID-19 Pandemic

The COVID-19 pandemic has had a limited impact on Katwijk Chemie. Plant operations have continued at capacity. We have implemented various measures to reduce infection risks in the workplace, including free testing for personnel. Shipments to customers have had little to no delays.

In several products demand from customers has increased over the COVID-19 pandemic. The quick economic recovery in the second half of 2021 has also led to reduced availability of some raw materials and to very strong increases of costs for materials, energy and transport. We have set priorities in our production planning in accordance with our commitments to customers and their reliance on our supply. Our primary objective is that no patients are affected by shortages of supply. We ask our customers to share forecasts and to place purchase order well in advance where possible.

Industry Perspective

The COVID-19 pandemic seems to have led to a push for more domestic production of pharmaceuticals and Active Pharmaceutical Ingredients, especially in Europe and in the United States. There seems to be more concern about dependence on imports from India and China in particular.

We welcome this discussion. We also welcome the recognition of API manufacturers contributing substantially to society. However, in order to actually improve the security of supply of pharmaceuticals and APIs, we do not believe in the mantra “buy domestically”. We believe in a tailored approach, assessing risks per product across the supply chain. In our view the assessment should be about the number of suppliers in each step of the supply chain, including early stage chemical intermediates, and the supply risk profiles of those specific manufacturers. The assessment should not only look at whether pharmaceuticals and APIs are imported or manufactured domestically.

We do believe that regulators and payors for pharmaceuticals and pharma companies need to strike a good balance between cost and risks. It is often not feasible to strongly drive down costs without compromising on risks for supply security and quality. Environmental impacts and conditions for factory workers should also be considered when making sourcing decisions.