Last week we wrote about how patent expirations and pharmaceutical company consolidation has directly affected the price of generic drugs. This week we add to the list of reasons for these increased prices.
Supply Chain Deficiencies
Some overseas suppliers of bulk ingredients used by drug manufacturers have had difficulty meeting increased FDA standards. Newly instituted quality-control programs designed to bring suppliers into FDA compliance have delayed the production of ingredients and contributed to the increase in drug pricing.
Delayed FDA Approvals
The FDA is behind on its approvals of new generic medications. While they’re working overtime to increase their approval rates, the current gridlock will take time to break, and with few new competitors in the drug manufacturing market, the price of generics may not be going down any time soon.
No matter the market conditions, KeyScripts will continue to provide the highest quality medications at the best contracted prices in the workers’ compensation industry for brand, generic and specialty medications.
By: Sean D. Chitwood, PharmD, MBA