Why Are There Drug Shortages?

Regulations: In 2010, product quality issues — and the subsequent regulatory actions taken by FDA to address these problems – were involved in 42% of the drug shortages.

Price controls: The result of these policies is that generic prices can’t rise to reflect changing demand or the need for bigger investments in manufacturing.

Regulations: In 2010, product quality issues — and the subsequent regulatory actions taken by FDA to address these problems – were involved in 42% of the drug shortages.

Price controls: The result of these policies is that generic prices can’t rise to reflect changing demand or the need for bigger investments in manufacturing.

Labeling restrictions: that prevent firms from branding their products, and reflecting by how they price them, legitimate improvements in manufacturing that allow drugs to be produced more reliably and in scalable facilities.

Source: Scott Gottlieb testimony. See our previous posts here, here, here and here.