We’ve had some consolidation mergers in which products lines had to be divested, after which there was a whole other process. One of the most frustrating things about drug shortages is how reactive you have to be. The study confirmed that drug shortages are multi-factorial, often resulting from issues within the quality systems, which can be affected by key aspects of organizational governance and the quality of interactions with regulatory authorities. The following is a list of 17 robust possibilities that we have gleaned from the literature on the problem: 1. } Troy Trygstad, PharmD, MBA, PhD: Were both of you impacted by Hurricane Maria? 6 In this report, manufacturing and economic factors were cited as the /* fix file attachment spacing */ Complete anonymity was assured for all respondents. The organization also worked with several reporters and publications covering the pharmaceutical industry to ensure maximum outreach and participation by industry participants with direct knowledge of actual drug shortages and shortages that had been narrowly avoided. One of the most recent examples of possible corruption comes from an Oct 14 report by Iraqi military intelligence, who confiscated a large medical cargo of drugs—including 19 trucks full of medicine such as insulin—departing Iran. .flex.flex-3-col .flex-item { More specifically, the report identified three main causes of drug shortages: Erin Fox, PharmD, BCPS, FASHP: In most of the raw materials, the active pharmaceutical ingredient…is similar: the raw materials come from China and India in the majority of cases. But you’re right: 1 little hiccup and the flow of work and production shuts down. } Prevalence of Drug Shortage Today and Community Awareness. .homepage-feature-banners .field-items .field-item:hover .banner-text:before { background-color: #e5f7fb; When there’s a problem there, clearly the manufacturers can’t make the product. color: #00649d; For the acute-care space, it affects us a bit more. -ms-flex-direction:column; Loss of drug manufacturing site or production line: 2% 4. Supply-Chain Communication and Drug Reallocation, 12. background-repeat: no-repeat; Troy Trygstad, PharmD, MBA, PhD: We had Hurricane Florence and 3 other hurricanes meander through North Carolina this year, as well as one of the largest typhoons ever in the other hemisphere. Troy Trygstad, PharmD, MBA, PhD: Give me an example of a downstream effect. Active ingredients for European products are made at 4420 sites in India, 2794 in China, 1936 in Europe, and 599 in the US.9 Medicines are cheaper to make in developing countries, but disruptions to infrastructure are more likely, distant factories are difficult to inspect frequently, and long supply chains are fragile. Companies are publicly held, and they have an obligation to their shareholders to generate revenue. It’s as if we’re short on dextrose, sodium bicarbonate,…and water. /* New ui component for Video Slider */ The report concludes there are three root causes causing drug shortages: Lack of incentives for manufacturers to produce less profitable drugs When manufacturers have limited profitability opportunities, they are less likely to invest in older drugs and expanding capacity. color: white; } background: #f2f2f3; background-image: url(/sites/default/files/assets/images/strategic-plan/strategic-plan-banner1900x400.jpg?v=123); /* fix flex col 3 */ /* contact form */ .ispeak-filters .form-actions { @media (max-width: 860px) { Just using that as an example, here you are downstream at the health systems, and you see a shutdown and immediately you start planning for that. .featured-tabs .hp-view-row .node--type-training-courses .icon { Expected to be reactive all the time is very, very frustrating that! 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