Friday, January 25, 2013

Too Little Reward For Quality - Drives Generic Injectable Shortages

Clinical Pharmacology & Therapeutics - Economic and Technological Drivers of Generic Sterile Injectable Drug Shortages:

"Over the past few years, an increasing number of critically needed medicines have been in short supply. Using economic theory to frame the drug-shortage problem, this paper explores why and how manufacturing-quality problems could combine with other economic and technological factors to result in shortages of generic sterile injectable drugs. The fundamental problem we identify is the inability of the market to observe and reward quality. This lack of reward for quality can reinforce price competition and encourage manufacturers to keep costs down by minimizing quality investments."

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