Biden administration examining role of supply chain middlemen in generic drug shortages

[BumRushDaShow]

Source: CNBC

Published Wed, Feb 14 202412:27 PM EST


The Federal Trade Commission on Wednesday said it is examining the role that drug wholesalers and companies that purchase medicines for U.S. health-care providers play in shortages of generic drugs, which account for the majority of Americans’ prescriptions.

The move follows an unprecedented shortfall of crucial medicine ranging from injectable cancer therapies to generics, or cheaper versions of brand-name medicines, over the last year, which has forced hospitals and patients to ration drugs. Problems from manufacturing quality control to demand surges can drive supply issues.

But the Biden administration is zeroing in on other players in the drug supply chain to uncover the “root causes and potential solutions” to ongoing shortages.

In a joint request for information, the FTC and the Department of Health and Human Services are seeking public comment on the contracting practices, market concentration and compensation of two types of middlemen. They are group purchasing organizations, which broker drug purchases for hospitals and other health-care providers, and drug wholesalers, which buy medicines from manufacturers and distribute them to providers.

Read more: https://www.cnbc.com/2024/02/14/ftc-hhs-examining-cause-of-generic-drug-shortages.html

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Link to joint FTC/HHS PRESS RELEASE and RFI - FTC, HHS Seek Public Comment on Generic Drug Shortages and Competition Amongst Powerful Middlemen