In the latest in a flurry of executive actions, the Obama Administration has directed the FDA and the Justice Department to reduce shortages in prescription drugs, a growing problem over the last decade. The order is being sold as part of the Administration’s “We Can’t Wait” campaign to push economic actions in the midst of gridlock in Congress on jobs measures, but actually this looks more like a regulatory enforcement action to stop unnecessary bottlenecks in the drug pipeline.
This is from the fact sheet:
Early notification of potential drug shortages can help FDA work with drug manufacturers, hospitals, doctors, and patients to prevent or mitigate a shortage before it becomes a crisis. Currently, Federal law requires drug manufacturers to notify FDA when production of critical drugs provided by only one manufacturer is being discontinued. The President’s order directs FDA to broaden reporting of potential shortages of certain prescription drugs. Additionally, the Executive Order requires FDA to expand its current efforts to expedite review of new manufacturing sites, drug suppliers, and manufacturing changes to help prevent shortages.
While additional manufacturing capacity is necessary to fully address the drug shortage problem, early disclosure can have a significant, positive impact on the incidence and duration of drug shortages. This year alone, voluntary early notification by manufacturers allowed FDA to successfully prevent 99 drug shortages [...]
The President’s Executive Order also directs FDA to work with the Department of Justice to examine whether any secondary drug wholesalers or other market participants have responded to potential drug shortages by illegally hoarding medications or raising prices to gouge consumers. For example, the ranking member of the House Committee on Oversight and Government Reforms, when announcing his investigation into so-called gray markets, expressed concerns about a report that a leukemia drug whose typical contract price is about $12 per vial was being sold at $990 per vial – 80 times higher. A Premier healthcare alliance report released in August estimated that the typical gray market vendor marks up prices by an averaged 650 percent. At the extreme, a drug used to treat high blood pressure that was normally priced at $25.90 was being sold at $1,200 due to a shortage.
Amy Klobuchar in the Senate and Diana DeGette in the House have bipartisan legislation to reduce prescription drug shortages through increased disclosure and additional authority to the FDA on enforcement. This executive order moves in that direction, and the FDA will set up what they can do on a statutory basis, which is a voluntary notification process on drug shortages.
I saw something about this being a jobs measure, and I don’t really know what that means. This is mostly a technocratic action to make sure that life-saving prescription drugs aren’t being artificially stopped from getting to market so that pharmaceutical companies can raise prices. I suppose that additional manufacturing of drugs in shortage will have some effect on jobs, but that’s not really the goal of this initiative. It’s to stop artificial bottlenecks created by market monopolies or moving all the production facilities to China and India.
This is just a carrot-and-stick approach to make sure drugmakers are getting their goods into the hands of people who need them. It’s a solid if modest approach, and one wonders why this step was not taken sooner, if drug shortages are indeed a growing problem. This is, however, the first executive order affecting FDA operations since 1985.
Gardiner Harris has more for the New York Times.




13 Comments

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I think it means that Obama wants to win re- election, jobs is the issue;
From this point, everything he does, right down to going to the can, will be described as a jobs measure.
ie:
free trade agreement south Korea. ….. jobs measure. and so on.
Nothing in the way of saying; “I was in bed with big Phama, have seen the errors of my greed, and will push DoJ to investigate Medicare drug pricing.”
And if we’d had single-payer, or probably, even a good public option, none of this would have to happen.
Get the goddamn robber barons out of it. Government-run healthcare. NOW!
Small bore stuff. Wonder why he bothers.
Seems to me O lacks the vision thing. /s
Obama doesn’t say it because he doesn’t see it.
I’ve been reading about critical drug shortages for at least the last year. One of my scripts has had shortages and the pharmacist has no idea why. It’s a very common, and cheap, script. She has to ration out her supply when shortages happen. No big deal for me, but for seniors who don’t get around easily, it’s a problem.
I also have been given 3 or 4 pills when the script called for 30 and told they would probably have more in a few days. And this is at Walgreen’s which hardly a small drug store.
Here is a crazy idea. Allow imports from Canada with really cheap pricing because the Canadian Gov know how to negotiate for the public good, not K Street corporate greed.
Mine at Target. The pharmacist I talk to does the orders and she’s stumped. Another ordering pharm I talked to several years ago explained that prices fluctuate quite a bit month to month and distributor to distributor and she had no idea why. In those circumstances, one wonders how retail pharmacies hold prices fairly steady month to month.
I call around locally and check web prices every time I re-order. It’s amazing how much prices vary: more than double from here to there. Sometimes the last place you’d imagine has the best price: just got an order from CVS, of all places. Really, it pays to shop around.
Canada law prohibits. Canada proprietaries are TAX PAYER SUBSIDIZED. By Canadian tax payers, of course, and Canadian tax payers don’t want to subsidize American free loaders. It’s against Canadian law for Canadian pharms to fill out of country scripts. As well it should be, and considering that at one time the free loading American problem was so acute, Canadians couldn’t get some scripts filled on a timely basis. Canadian pharms send American scripts to other countries for fulfillment.
I don’t think most Americans are aware of the Canadian drug subsidies and perhaps wouldn’t care if they did. The other point, or counterpoint, is that generics are more expensive in Canada. Check it out.
The population difference between the countries is something on the order of 10 to 1, so it’s understandable that Canada wants to protect it’s taxpayers from name brand exploitation and doesn’t think swapping name brand privileges there for generic privileges here would be a fair deal. Furthermore, there’s always more, you know, American law allows name brand drug manufacturers to pay generic manufacturers to not manufacture generic substitutes. Yep, a legal
briberemuneration to keep cheaper generics out of manufacture. Don’cha luv it?There have also been shortages around the country of stimulant medications for ADHD. Okay so the kid won’t die without it, but might not pass a grade.
And big shortages of monthly depot antipsychotic medications, with resulting huge increases in price. And most of the time these are already paid for by Community Mental Health Clinics and/or Medicaid, which is, when last I looked, part of government.
Keep your eye on that, tho, because next you check, Medicaid may be gone as a practical matter.
And here’s how they win in court:
“A string of courtroom victories by drugmakers in key product-liability trials could be a signal that these and other companies can beat back claims in upcoming cases against them.
. . .
“Today, a judge commonly asks both sides to choose a handful of cases that would go to trial first and then adds several others to the pool. Cases are tried one after another, rotating from one party’s choice to the next.
“The shift has made it tougher for those suing big corporations, since plaintiffs already bear the burden of proof, their advocates say.
More here.
Maybe there’s a shortage of a certain substance that is in demand among staffers etc in the WH. Perhaps they can’t keep the staff in a state of befuddled confusion unless they slip a few mickeys into their Morning Joe.
We need a patriot inside the Administration to let the Obama Family know that noone wants World War Three and no amount of befuddling capsules will make up for the horror of a nuclear way happening. The drug that doesn’t seem to have run out yet is the one causing the latest rush of adrenaline I think it’s called Dronezilla or something.