Nordic Life Science 1
“If the conflict is prolonged, its impact would b
ecome increasingly relevant in terms of credit for parts of the European life science sector. Higher logistics and energy costs would accumulate alongside existing pressures such as loss of exclusivity cycles, rising capital expenditure, and sustained R&D intensity.” the pressure would be felt less through immediate supply shortages and more through margin erosion, higher working capital and weaker cashflow, putting strain on balance sheets over time.” D o you know anything about the consequences on the healthcare system in the Middle East? How is access to medicines affected in these countries? “The impact on healthcare systems varies across the Middle East, depending on income level, import dependence, and 32 | NORDICLIFESCIENCE.ORG exposure to the various conflicts in the region. Most countries rely heavily on imported medicines, biologics and medical devices, making them sensitive to transport disruption and higher logistics costs.” “In countries affected by conflict or where incomes are lower, disruptions translate more quickly into delivery delays, higher prices, and pressure on hospital inventories, particularly for essential and temperature-sensitive medicines. In these settings, logistics reliability matters as much as physical availability. In wealthier countries, including those in the Gulf, medicine access generally remains intact, but healthcare systems face higher procurement costs and longer lead times as air freight is rerouted, and insurance and fuel costs rise.” O verall, the region is not immediately likely to experience widespread drug shortages, but faces the strains of reduced reliability, higher costs, and growing operational challenges, particularly in areas with fragile healthcare systems – particularly those in war zones such as Gaza, southern Lebanon, Sudan, Yemen, and inside Iran.” NLS THE MIDDLE EAST // INDUSTRY IMPACT