Biden administration examining role of supply chain middlemen in generic drug shortages – By Annika Kim Constantino (CNBC) / Feb 14, 2024
- The Federal Trade Commission said it is examining the role drug wholesalers and companies that purchase medicines for U.S. health-care providers play in shortages of generic drugs.
- The move follows an unprecedented shortfall of crucial medicine over the last year, which has forced hospitals to ration drugs ranging from injectable cancer therapies to pain treatments.
- 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: group purchasing organizations and drug wholesalers.
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.
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