STENOCARE A/S NASDAQ FIRST NORTH GROWTH MARKET, DENMARK TICKER: STENO STENOCARE A/S (“Stenocare”) is addressing the supply challenges faced by general medicine products in Europe, with a commitment to managing their supply chain to uphold the principle of providing ongoing and predictable treatment with Stenocare products.
Doctors and patients often take for granted that prescription-based medicine will always be available for treatment. However, throughout 2023, a situation of growing supply challenges with various types of medicine has arisen in many European markets. In Denmark, the Danish Medicines Agency has shared data showing the highest number of supply issues in several years, with an average of 108 products being affected per month. According to Danish media outlet Berlingske Tidende, the Agency estimates that the nature of these issues is critical, and that resolution will take a considerable amount of time. The root causes are diverse and stem from reduced access to raw materials and production issues.
Patients are experiencing the consequences of these supply issues. They are unable to continue treatment with their prescribed medicine and are forced to switch to alternative treatments. This process involves multiple steps, including medical consultations and dosage adjustments, which require time and personal effort.
Stenocare is fully committed to ensuring a consistent supply of medical cannabis products to patients. This commitment is more complex than it may seem, as it involves various external stakeholders who need to consistently deliver materials, maintain production capacity, offer logistical services, obtain regulatory certificates and laboratory results – to name just a few examples. Stenocare closely monitors the entire supply chain, from the cultivation of raw materials and production capacity to the local warehouse stock in each country. The company follows a stock principle based on the monthly sales run rate, which determines that the total expected stock level three months into the future should include a buffer of one additional month's worth of sales. This principle is based on the fact that it typically takes two months to complete international documents with health authorities, produce the products, have them tested in external laboratories, and ship them to the warehouse.
Stenocare's CEO, Thomas Skovlund Schnegelsberg, comments:
“We are aware, based on feedback from doctors and patients, that a consistent and predictable supply of our products is critical. Therefore, we maintain material and time buffers throughout the supply chain. We have established close and ongoing relationships with all our partners to manage the entire process. I recall an instance where a shipment was stranded at Frankfurt Airport, and working together with our exceptional logistical partner, we arranged for a truck to transport the products home in time to make them available for patients in Denmark and to comply with the supply obligation from the Danish Medicines Agency. I believe this exemplifies our commitment to monitoring each step in the value chain and our dedication to supplying our products to patients.”