Are generic drug prices too low?

Perhaps the answer is yes, if we want to have a more resilient supply chain. At least that is the argument from a commentary by Mattingly and Conti (2022):

Several medications that patients need have been in short supply before and during the COVID-19 pandemic, including low-priced, off-patent generic drugs. The White House recently released a report highlighting medication supply as an important issue requiring intervention. We argue the report’s proposed solutions do not go far enough to address a major problem related to drug shortages, as some prices are too low. We propose additional policies aimed at increasing prices to improve the supply of generic medications.

Which drugs are at greatest risk for lack of supply?

research suggests generic medications with the lowest prices are at an increased risk of experiencing shortages. Others have noted low prices for generic medications create incentives for manufacturers to cheat on quality, especially if it is hard to detect by patients or medical providers.

The article is interesting throughout. Read the full article here.