“The shortages of oncology drugs are primarily in the generic drug market,” says Dr. Kevin Shulman, a professor of medicine and clinical hospitalist at the Clinical Excellence Research Center at Stanford University. There is no financial incentive for big pharma to manufacture older generic medications that are critical to the treatment of several common cancers and very few companies invest in doing so, says Dr. Kristen Rice, medical oncologist with a practice in San Diego, California.
“We have consolidated drug purchasing in the US to drive down acquisition prices of these already low-cost medications. Unfortunately, this market functions based solely on price, not product quality or supply chain quality.”
This has led to drug shortages when the price is reduced, as it drives suppliers out of the market. He adds that by not having a robust and diverse supply chain, the US is extremely vulnerable to manufacturing quality issues when it comes to the remaining suppliers in the system.
“We need the market to trade-off price and quality, and we need health systems to change their procurement models to emphasise product and supply chain quality,” he explains. Rice, who has hands-on experience dealing with this current shortages, agrees with Shulman and adds that the regulatory framework lacks the ability to ensure that critical medications are produced in quantities sufficient to meet the needs of the US population.