Drug shortages

I am puzzled by the apparent drug shortage problem.
http://www.fda.gov/Drugs/DrugSafety/DrugShortages/ucm050792.htm

My hypothesis is that companies are somehow de-incentivized to supply drugs due to regulation. But why wouldn't eager young companies step up to meet this urgent medical need?

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Drug shortages and GPOs

To understand the root cause of the drug shortages, see this1/4/12 white paper, "Connecting the Dots: How Anticompetitive Contracting Practices, Kickbacks, and Self-dealing by Hospital Group Purchasing Organizations (GPOs) Caused the U. S. Drug Shortage," by Patricia Earl and Phillip L. Zweig. It's available at www.canadadrugshortage.com and www.puncturemovie.com, which also contains extensive documentation on GPO abuses. This material includes four Senate Antitrust Subcommittee hearings, federal and state investigations, media exposes, antitrust lawsuits, a 2009 book, "Group Purchasing Organizations: An Undisclosed Scandal in the U. S. Healthcare Industry," and even a Hollywood movie (PUNCTURE, starring Captain America's Chris Evans).
In a nutshell, these purchasing cartels have rigged the healthcare supply marketplace, including generic drugs, and undermined the laws of supply and demand in this critical industry. Ergo, we have a global drug shortage!

Phil Zweig
www.philliplzweig.com
Tags: Hospital group purchasing organizations,drug shortages

agreed

But the shortages here appear to be systemic, and growing. And they don't need to be more frequent to be worthy of comment. These are life saving drugs, not ipods.

http://pipeline.corante.com/archives/2011/06/14/a_shortage_of_cancer_dru...

Even methotrexate is in short supply. This is a drug that can be bought in pure form from over a dozen sources (http://zinc.docking.org/substance/1529323) and yet somehow is not available as clinical doses?

http://www.cancer.org/Cancer/news/News/fda-announces-steps-to-ease-cance...

On balance, perhaps I'm not so much puzzled as annoyed.

Not sure why you are

Not sure why you are puzzled. Nearly every industry has shortages. Do you have statistics showing they are more frequent in the drug industry?

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