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Here’s what’s keeping pharmacy shelves bare

The ideas and innovators shaping health care
Jan 19, 2023 View in browser
 
Future Pulse

By Erin Schumaker, Carmen Paun, Ben Leonard and Ruth Reader

DANGER ZONE

mostly empty pharmacy shelf

An early flu season, combined with RSV and Covid, prompted a rush on cold medicine. | Alex Wong/Getty Images

More-than-typical shortages of common over-the-counter and prescription drugs have caused headaches for sick Americans and those managing chronic diseases.

Public attention has focused on widespread shortages linked to increased demand for medicines used to treat common respiratory diseases, such as flu and respiratory syncytial virus. Those ailments spiked nationwide after a pandemic hiatus.

"Demand shortages have been kind of a new challenge for us since the pandemic," said Valerie Jensen, associate director of the drug shortage staff at the FDA. In addition to shortages of cold and flu medication, Jensen pointed to surging demand last year for Adderall and the diabetes drug Ozempic. "We've had some unusual circumstances."

Most shortages were caused by supply-chain issues for which public policy solutions might exist. But while long-term changes might help the supply chain function better, they wouldn't necessarily stop a real-time shortage in its tracks.

Erin Fox, a senior pharmacy director at University of Utah Health who directs its Drug Information and Support Services, says her team is tracking 290 active shortages with only a handful spurred by consumer demand.

What's going on:   

— Supply disruptions: Contamination at manufacturing facilities is among the most common problems, although delays and discontinuations also contribute, according to the FDA.

Supply shortages are often linked to companies cutting corners, said Ilisa Bernstein, who spent the past 10 years of her more than 30-year FDA tenure dealing with shortage-related compliance issues.

"When you cut corners, you have problems, and when you have problems, you have to fix them," said Bernstein, now interim CEO at the American Pharmacists Association. Fixing those problems often means shutting down the manufacturing line.

— Haves and have-nots: Some of the drug shortages are actually signs of misallocation. Certain parts of the country might have more supply than they need, while other parts of the country are low on or out of stock. Reallocation is easy enough for big national pharmacies like Walmart but harder for hospitals or independent pharmacies.

— Stockpiling and hoarding: "When FDA announces a shortage, orders really go up," said Marta Wosińska, a health care economist and visiting fellow at the USC-Brookings Schaeffer Initiative on Health Policy. "The behavioral response exacerbates the problem," said Wosińska, who has also worked at the FDA. Wholesalers buying drugs in anticipation of a shortage can trigger a shortage or make it harder to end an ongoing one.

Why it's so hard to end drug shortages: Health care manufacturing is complex, with slim profit margins for makers of the generics most often in short supply. As a result, generic drug manufacturers are reluctant to produce more product than they know they can sell, according to Wosińska.

What could help: 

— More transparency from pharma: Fox, Bernstein and Wosińska told Erin that to address shortages, drug companies need to be more transparent about where the drug supply is at any given time. Without better data about the drugs' location, it's impossible to send them from areas of the country that have enough supply to those that don't.

Companies are already required to notify the FDA about supply or manufacturing disruptions, Jensen explained, noting that the agency used that information to prevent hundreds of shortages over the past five years. But there's no similar requirement for reporting increased demand. "We do think that would be helpful," Jensen said of advanced warnings. "What that would do is help us to use our tools earlier and hopefully prevent shortages before they occur," she said.

But for now, that disclosure is voluntary. "It would take legislation to require them to actually have to notify us of increased demand," Jensen said.

— Drug compounding: Custom formulations of drugs made by pharmacists, a process known as drug compounding, can rapidly address shortages of certain drugs. In response to a shortage of the antibiotic amoxicillin, for example, the FDA relaxed some rules for compounding the drug to create more supply. Bernstein's group sent a letter to the FDA this month asking the agency to issue similar guidance to allow for compounding for ibuprofen and acetaminophen.

— An update of the essential medicines product list: An executive order issued by former President Donald Trump in 2020 required the FDA to create a list of essential medicines to have on hand with an adequate supply at all times. The problem, Wosińska said, is the list is geared toward responding to infectious diseases and chemical, biological, radiological and nuclear threats. We should expand the list to include products also critical in non-crisis times, such as baby formula, antipsychotic drugs and mood stabilizers, Wosińska wrote in a Brookings Institution paper last year.

 

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This is where we explore the ideas and innovators shaping health care. 

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Share any other thoughts, news, tips and feedback with Ben Leonard at bleonard@politico.com, Ruth Reader at rreader@politico.com, Carmen Paun at cpaun@politico.com or Erin Schumaker at eschumaker@politico.com.

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Today on our Pulse Check podcast, Lauren Gardner talks with Ben about his recent conversation with Sen. Mark Warner (D-Va.), who plans to introduce cybersecurity legislation early this year that would set minimum standards for health care organizations to ensure their patient data is protected from hackers.

WORLD VIEW

Adar Poonawalla, chief executive officer of Serum Institute of India Ltd., poses for a photograph in Pune, Maharashtra, India.

Poonawalla, of the Serum Institute of India, wants to help developing countries manufacture vaccines. | Dhiraj Singh/Getty Images

Adar Poonawalla, the CEO of the Serum Institute of India, the world's largest vaccine manufacturer, was bullish on his own company's products but less so on the world's preparedness for the next infectious disease outbreak during his stop at the World Economic Forum in Davos, Switzerland, this week.

Here are key points from his interview with POLITICO's Erin Banco that caught Carmen's eye:

— Poonawalla expects a malaria vaccine developed by researchers at Oxford University to be approved by the World Health Organization "in the next few months." The Serum Institute of India is set to produce 200 million doses of it starting this year.

The new vaccine is more effective and cheaper than the world's first malaria vaccine, Mosquirix, made by GSK.

Data from a clinical trial in Burkina Faso involving more than 400 children under age two showed that the new vaccine had between 70 and 80 percent efficacy, depending on dosing.

That's much higher than the 30 percent or so efficacy of Mosquirix, which the WHO recommended in 2021.

— Supplies of human papillomavirus vaccines are limited and expensive, but the Serum Institute is making progress on an affordable version. Poonawalla said it plans to distribute a new vaccine in India and then in other low and middle-income countries.

— Poonawalla slammed political leaders' "total lethargy" in improving their capacity to produce vaccines domestically for future infectious disease outbreaks. He rebuked leaders of several countries for turning down his offer to help.

"They're not interested. It's a joke. I couldn't believe how quickly they turned from the panic mode and proactive mode of trying to get vaccines [for Covid] and other things," he said, "without wanting to understand what it takes, firstly, to make a vaccine, how long it takes to build the infrastructure. They just wanted the vaccine."

 

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AROUND THE NATION

A Nurse Practitioner works in an office where she confers via teleconference with patients seeking self-managed abortions, with a box of mifepristone tablets in the foreground.

A New York state senator wants to shield Empire State doctors from abortion prosecution. | Jeff Roberson/AP Photo

Democrats in the New York state legislature have unveiled legislation to protect providers who prescribe abortion pills via telemedicine to people in other states where the procedure is banned.

It may be the next frontier in the legal battle over abortion.

The legislation would deny extradition requests from other states if the provider was in New York when they prescribed medication abortion to a patient in a state that bans the procedure.

"This bill … will strengthen New York's role as a nationwide leader in reproductive rights, creating new avenues for those who live in states with severe abortion restrictions," said state Sen. Shelley Mayer, who represents the Westchester County suburbs of New York City, in a statement.

The New York Civil Liberties Union, which initially hedged for fear of "high legal risk," according to a New York Times report, now backs the bill.

The big picture: The proposed legislation is the latest in a series of attempts by abortion rights advocates to shield telemedicine abortion providers from prosecutors. Massachusetts has already passed a similar law.

In 2021, the FDA eased regulations to allow abortion pills to be prescribed virtually and sent to patients in the mail. Medication abortions have become increasingly common, now making up most abortions in the U.S.

 

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