Issue link: https://beckershealthcare.uberflip.com/i/1528857
18 EXECUTIVE BRIEFING As a leading supplier of over 600 generic sterile injectables with the largest and broadest portfolio in the industry, Pfizer is acutely aware of the market dynamics that contribute to generic sterile injectable drug shortages. Generic sterile injectables are notoriously complex, challenging, and costly to manufacture due to numerous factors including, but not limited to, aseptic manufacturing processes, long manufacturing lead times, higher manufacturing costs than other medications, and inflationary impact. 4 The complex and highly regulated nature of manufacturing requires significant ongoing investment to maintain reliable supply—a commitment Pfizer continues to make. However, Pfizer believes that the current low cost for generic sterile injectables does not support the level of ongoing investment required to manufacture them. As a sterile injectables supplier, Pfizer has witnessed the While long-term solutions to address the root causes of injectable shortages appear widespread and daunting, t h e y d o n' t h a v e t o b e . T h e r e a r e s t e p s w e c a n t a ke together now to combat the underlying economic factors driving shortages. 2 Here are three proposed solutions for hospital pharmacies that, if started today, can help lead to more sustainable generic sterile injectable supply tomorrow. Solution 1: Purchasing from suppliers with a long-term commitment to the generic sterile injectable market Low prices that limit supply chain investments, coupled with high manufacturing costs, make the generic sterile injectable market more susceptible to drug shortages. 5 Pharmacies can start by acknowledging preferred suppliers and actively choosing to purchase from those investing in reliable and long-term generic sterile injectable economic forces unique to the generic sterile injectables marketplace—such as buyer consolidation (hospitals, Group Purchasing Organizations [GPOs], wholesalers/ distributors), suppliers entering and exiting the market, and a focus on cost-cutting by healthcare networks—that we believe have combined in a vicious cycle to further drive down generic sterile injectables pricing. While the focus on controlling healthcare costs is i m p o r t a n t , t h e s e m a r ke t c o n d i t i o n s h a v e c r e a t e d unintended consequences to the sustainability of generic sterile injectable manufacturing, leading to consolidation of manufacturers or product discontinuations and, ultimately, increasing the likelihood of drug shortages. Case in point—in 2023, the average price of sterile injectable medicines in shortage was nearly 8.5 times lower than injectables not in supply shortage. 2 Three actions hospital pharmacies can take to combat drug shortages Economic factors drive rising rates of drug shortages By: Meera Bhavsar, MBA, RPh Vice President, Pfizer Hospital U.S. Sterile Injectables Working Together Against Drug Shortages 3 Proposed Solutions for Hospital Pharmacies Over the past few years, drug shortages have become an ever-present challenge for hospital pharmacies, with shortages at their highest in over a decade 1 and the majority of those, 53 percent, were for generic sterile injectable medicines. 2 We all recognize that the consequences of such shortages are dire for patients—all the while costing hospitals an estimated $359 million annually in additional labor costs to manage these shortages day-to-day. 3 Advertorial - Sponsored by Pfizer Hospital S:15.5" T:16.75"