Healthcare Supply Chain Management

WHO REALLY MAKES THE WORLD’S MEDICAL DEVICES? Ask someone where the world’s medical devices are made and you’ll probably hear: 🇺🇸 “The United States.” The reality is far more interesting. Today’s medical device industry is built on a global manufacturing ecosystem, where different countries dominate different technologies. Here’s how the world really compares. 🇺🇸 United States The world’s largest medical device market and home to many of the industry’s biggest innovators. It leads in high value technologies, implantables, robotics and advanced medical systems. 🇩🇪 Germany Europe’s manufacturing powerhouse, renowned for precision engineering, imaging technologies, surgical instruments and premium medical equipment. It remains one of the world’s largest medical device exporters. 🇯🇵 Japan A global leader in endoscopy, diagnostic imaging, precision components and laboratory technologies, backed by decades of engineering excellence. 🇨🇳 China Now one of the world’s fastest-growing manufacturers and, by export value, the largest exporter of medical devices. Its strength lies in large-scale production, electronics, consumables and rapidly improving innovation. 🇮🇪 Ireland One of the world’s most important MedTech manufacturing hubs, producing devices for many of the industry’s largest multinational companies and serving as a major European export base. 🇨🇷 Costa Rica A remarkable success story. Despite its size, Costa Rica has become a leading global exporter of sophisticated medical devices through significant investment from multinational manufacturers. 🇲🇾 Malaysia One of ASEAN’s leading medical device manufacturing locations, with more than 200 manufacturers and over 90% of production exported. Malaysia is recognised globally for gloves, medical consumables, diagnostics manufacturing and OEM production, while continuing to strengthen its position in higher-value MedTech manufacturing. The lesson? There is no single country that “makes the world’s medical devices.” Instead, the industry relies on an interconnected global network where innovation, manufacturing and supply chains span multiple continents. As companies diversify production, improve resilience and move closer to high-growth healthcare markets, regional manufacturing ecosystems are becoming more important than ever. For manufacturers looking toward SE Asia, Malaysia offers a compelling combination of manufacturing capability, regulatory maturity, export experience and strategic access to market. At TOOP CAPITAL SDN BHD, we help international medical device manufacturers establish and grow their presence in Malaysia through: ✔ MDA Authorised Representative Licence ✔ MDA Importer Licence ✔ MDA Distributor Licence ✔ GDPMD Certified Operations ✔ End-to-End Market Access & Commercial Support The future of MedTech won’t be defined by one manufacturing superpower. It will be shaped by the countries that build the strongest global partnerships.

America’s Pharmaceutical Supply Chain: A Global Dependence Being Reshaped   The U.S. trade deficit has widened dramatically; pharmaceuticals are a big reason why (see bar chart below). The entire pharma supply chain should be secure, it’s a mission-critical industry. The U.S. pharma industry's global supply network is heavily reliant on China and India. These two nations dominate the medication supply chain through their extensive production of base chemical components, generic formulations, and completed medicinal products. China provides approximately 40% of the active pharmaceutical ingredients (APIs) found in American medications, while India supplies roughly 30%. Chinese manufacturers produce nearly 90% of all ibuprofens consumed in the United States, and 80% of acetaminophen. The antibiotic sector, which includes amoxicillin is heavily reliant on raw materials from both countries as India is the dominant supplier for generic antibiotic manufacturing; same stats apply to antihistamines and most ingredients found in common cold and cough remedies. In cardiovascular treatment, statins and related medications contain active ingredients principally manufactured in Indian facilities. The production of hormonal treatments, including birth control medications rely on manufacturing processes for these complex compounds, mostly originating from China and India.   The combined impact of India's lead role in generic medication production and China's dominance in raw pharmaceutical ingredients highlights the intricate global interconnections within America's pharmaceutical ecosystem. Manufacturing efficiency and cost advantages in these nations make them compelling partners for American pharmaceutical companies seeking competitive pricing, however, this situation underscores the message coming from Washington D.C. where a ‘rethink’ is required to secure national security critical sectors including pharma, energy, technology, communications, and defense. It will take years plus huge capital investment/incentives to return the full pharma supply chain back to mainland USA, but this development finally appears underway. This strategic initiative to strengthen domestic production capabilities and safeguard the quality of vital medications to keep our population healthy is a core objective for the current administration. The administration will also address most favored nation (MFN) status where American drugs don’t cost U.S. citizens more than other countries as they do today. Hugely impactful changes with the pharma industry are happening this year.   Marathon Asset Management’s Private Credit healthcare team is actively addressing this issue by committing additional resources to the pharmaceutical and biotech sectors. The scale of the investment opportunity matches the urgency of the need.

Over the past weeks, headlines have again reminded us how fragile the global context remains. Escalation in the Middle East, the continued war in Ukraine, disrupted trade routes and rising transport uncertainty are no longer distant geopolitical issues, they are part of the operating reality healthcare systems face today. In this environment, healthcare systems are learning a hard truth: reliability matters as much as efficiency, and often more than price. When uncertainty rises, the question shifts. It’s no longer just “can you supply?” It becomes “will you still be there when it gets hard?”. Clinicians and healthcare leaders have lived the consequences of fragile supply chains over recent years. Shortages, substitutions and delays do not stay on spreadsheets. They surface in operating rooms, wards and already overstretched teams at precisely the moments when resilience matters most. This is why supply chain resilience deserves a more nuanced, healthcare‑centered conversation. What has become clearer to me is that supply chain resilience is not about where a company is headquartered or the flag on its logo. An American MedTech company may manufacture predominantly in Europe. A European one may rely heavily on Asian components. What truly matters is how deliberately the supply chain has been designed, governed and prepared for disruption. As a result, reliability has become a core element of differentiation not as an abstract concept, but as a practical enabler of healthcare continuity. The organizations that have earned trust during recent disruptions didn’t do so by chance. They made deliberate, and often uncomfortable, choices such as: - Diversifying manufacturing and critical suppliers - Building flexibility into logistics and transport - Holding inventory where failure has clinical consequences, not just where spreadsheets optimize turns - Connecting procurement, operations, regulatory strategy, quality of care and ESG into a single system view This shift also has implications for procurement and tender design. The most robust decisions increasingly ask questions like: - How resilient and diversified is the manufacturing and supply footprint? - What options exist if a site, supplier or transport route is disrupted? - Where is inventory held relative to areas of highest clinical risk? - How are regulatory, logistics and operational decisions coordinated under stress? - What contingencies are in place before they are needed? Embedding these questions early helps healthcare systems move beyond unit price as the default and select partners capable of sustaining care delivery when conditions deteriorate. In MedTech, trust travels quietly through the supply chain. Reliability isn’t always visible until it is missing. I explore this further in the article below and would genuinely love to hear your perspective #SupplyChain #Healthcare #MedTech #Resilience #Procurement #geopoliticalconflicts #healthcarecontinuity

Stranded on an Island ! The Hidden Global Dependence Behind Everyday Essentials. The core issue: Even when labeled “Made in USA,” most essential goods depend on complex global inputs. When one link breaks, the whole chain is at risk. A friend had a post today saying how they were stocking up on essentials similar to Covid and here is the reality behind their rational. Many assume that U.S. household staples — diapers, medicines, toiletries, batteries, and infant formula — are fully made in America. But the reality is more complex. While many of these products are assembled or packaged in the U.S., the critical ingredients and materials are globally sourced. Here's what that actually means: 🧷 Diapers Assembled domestically, but rely on super absorbent polymers and adhesives sourced from Asia and Europe. 💊 OTC Medications: Finished in U.S. facilities, but 80% of active pharmaceutical ingredients (APIs) come from India and China. 🧴 🪥 Toiletries (e.g., toothpaste, shampoo): Manufactured in the U.S., yet fragrances, surfactants, and packaging materials are imported — often from Southeast Asia. 🔋 Batteries: Brands like Duracell and Energizer operate U.S. plants, but the lithium, graphite, and manganese used in production come from countries like Chile, Australia, and China. 🍼 Infant Formula: Mostly made in the U.S., though nutritional additives and stabilizers are imported from Europe and Asia. These dependencies typically go unnoticed — until they’re disrupted. This week, a major U.S. retailer paused all China-origin bookings. Reports show a 50% drop in trans-Pacific eastbound ocean container volumes, partially driven by duties as high as 145% on some products. For retailers, the risk isn’t just higher costs — it’s product unavailability. And for consumers, it means empty shelves, price swings, and limited choices. The takeaway: Planning for resilience — not just cost efficiency — is now essential. Sourcing, manufacturing, and fulfillment strategies must reflect the true origin of materials, not just where final assembly happens. When supply chains stall, so do American jobs. Manufacturing lines slow. Distribution centers idle. Retailers cut back. #TPM #Oceanshipping #SupplyChain #Retailers #Consumergoods