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Understanding the Global Drug Shortage Crisis in 2023
The global drug shortage crisis has reached a critical level in 2023, with millions of people unable to access life-saving medications. One of the primary causes of this crisis is the supply chain issues that have disrupted the pharmaceutical industry's ability to produce and distribute essential medicines. In different parts of the world, there is a shortage of commonly used treatments, such as generic medicines and antibiotics. This situation has raised worries among patients, consumers, government officials, and the industry.
In this blog, we'll explore the reasons behind the drug shortage crisis and identify potential solutions to address this growing problem.
The Supply Chain Issues behind the Global Drug Shortage Crisis
The COVID-19 pandemic has only worsened the global drug shortage crisis, creating a sudden surge in demand for essential medications. The over-reliance on a few key suppliers for raw materials is one of the primary causes of the drug shortage. In many cases, these suppliers are located in a single geographic area, leaving the entire supply chain vulnerable to disruption. The lack of transparency in the supply chain also makes it challenging to identify the root cause of a supply chain disruption.
The excessive dependence on China and India for the supply of crucial medicines has led to an upsurge in drug shortages, which, in turn, have caused a decline in the quality of healthcare provided to patients. According to a report, the US heavily relies on China and India for 90-95% of generic sterile injectable drugs required for critical emergency care. As of 2021, India had a manufacturing capacity of 62% for active pharmaceutical ingredients globally, while China had 23%, and the US had only 4%.
Ongoing conflicts and supply chain disruptions caused by the war in Ukraine have affected the production and distribution of drugs. Additionally, the high inflation and energy prices have put pressure on generic drug manufacturers who face pricing regulations. To safeguard their limited medical supplies, some countries have temporarily banned the parallel trade of medicines. When over-the-counter drug shortages are announced, consumers tend to stockpile. Over-prescribing also contributes to the drug shortage crisis, with the UK's National Health Service estimated to lose £300 million yearly due to unused or partially used medication that cannot be recycled or reused.
The Consequences of the Drug Shortage Crisis
The drug shortage crisis has far-reaching consequences for patients, hospitals, and healthcare providers. Patients who rely on essential medications to manage chronic conditions may be left without treatment options. Healthcare providers may be forced to ration medications, leading to suboptimal patient outcomes and increased healthcare costs. In some cases, patients may be forced to turn to alternative, less-effective treatments or go without treatment altogether.
Europe is currently facing a shortage of commonly used medicines. A survey conducted by the Pharmaceutical Group of the European Union between November 14 and December 31, 2022, found that all 29 member countries reported experiencing shortages of medicines in community pharmacies. About 76% of the countries reported that the shortages were worse than the previous year. The survey also found that 79% of respondents had difficulty obtaining anti-infective drugs for systemic use, 76% had trouble getting medications for respiratory problems, and other conditions such as cardiovascular and gastrointestinal issues were also affected.
What are the Solutions to Address the Drug Shortage Crisis
Addressing the drug shortage crisis will require a collaborative effort from all stakeholders in the supply chain. Pharmaceutical companies must diversify their supplier base to reduce reliance on a few key suppliers. They must also work with suppliers to improve transparency and visibility in the supply chain, enabling them to identify potential disruptions and plan for future demand. Regulatory agencies must also play a role in addressing the drug shortage by working with pharmaceutical companies to identify critical drugs and develop contingency plans for supply chain disruptions.
A 2020 USP report “Increasing transparency in the medicines supply chain”, suggests that real-time data from pharmacies and hospital systems could improve understanding of medical product demand, and help AI and machine learning transform supply chain efficiency. Generic companies can use smart technology to reduce manufacturing costs by 20%, boost production, and improve quality, and delivery reliability. The KPMG report recommends generic drug companies look to mergers and acquisitions to increase scale or vertically integrate, redesign the supply chain to reduce dependence on distributors and API suppliers and invest in innovation.
The global drug shortage crisis is a significant problem that requires immediate attention. Supply chain issues have played a significant role in the shortage, and addressing them will require a collaborative effort from all stakeholders. By working together, we can ensure that patients have access to the essential medicines they need to manage chronic conditions and improve their quality of life.
