Geopolitical conflicts and the global pharmaceutical economy: A conceptual analysis of supply chain disruptions and market resilience

Purpose The purpose of this paper is to examine how geopolitical conflicts impact the global pharmaceutical economy through disruptions in pharmaceutical supply chains and pharmaceutical markets. Specifically, it aims to explore how current geopolitical conflicts impact pharmaceutical markets and supply chains in terms of pharmaceutical availability and production costs. Approach This study used a conceptual approach in its analysis of how geopolitical conflicts impact pharmaceutical markets and supply chains. It synthesized literature and insights from various sources and global pharmaceutical supply chain analyses to create a conceptual framework that explains how pharmaceutical supply chains and markets are impacted by geopolitical conflicts. Findings From the analysis of literature and the pharmaceutical supply chain on a global level, it has been observed that geopolitical conflicts impact pharmaceutical supply chains through trade sanctions, variations in energy prices, transportation problems, and shortages of raw materials and APIs. In such cases, the cost of production is affected, and supply chain stability is impacted. To mitigate such effects, supply chain diversification and strategic medicine reserves are recommended. Originality This paper aims to contribute to the literature with a conceptual perspective on the relationship between geopolitical conflicts and pharmaceutical market dynamics. This is an underexplored issue in pharmaceutical marketing and healthcare management literature. By combining supply chain risk literature and pharmaceutical market dynamics analysis, it is hoped that this study may offer a framework that can help understand and manage geopolitical risks in global pharmaceutical supply systems.