Preparing for Drug Shortages

How prepared is your business or practice for the type of drug shortages that punctuated the initial COVID19 lockdowns in 2020?

As we turn the half-way mark on 2021 and enter winter many prominent authorities are expecting continued difficulties arising from the Delta and now Lambda variants of the virus with governments around the world expected to react similarly with irregular and unpredictably sudden lockdowns as seen in Australia, France and Germany. What does this mean for pharmaceutical distributors, pharmacies, hospitals, and medical practices? Unexpected supply chain disruptions and drug shortages.

As of August 2021, a total 108 different drugs are currently already in a state of shortage according to the Food and Drug Administration. As more nations and states with the US discuss harsher lockdowns it doesn’t bode well for the stability of pharmaceutical supply lines.

The Center for Infectious Disease Research and Policy at the University of Minnesota wrote,

“In a new American Society of Health-system Pharmacists (ASHP) report, 92% of its “2021 Pharmacy Forecast” panelists say global issues like trade restrictions, pandemics like COVID-19, or climate change will increase the potential for more drug shortages, and almost 90% say a major technology failure or breach could cause widespread disruptions in the delivery of US healthcare supplies.

To help mitigate these issues, 90% of panelists also predicted that at least 75% of health systems will develop allocation guidelines. In the report, the ASHP notes a 36.6% increase in ongoing drug shortages from 2017 to 2020, with 276 shortages occurring in 2020.”

Industry concerns regarding another (or rather an exacerbated continuation) of the drug shortages of 2020 weren’t limited to academic concerns or government authorities either. Slowly but surely the industry is awakening to the renewed danger.

Erin Fox, PharmD, and Aaron Kesselheim, MD, JD, MPH wrote in the 2021 Forecast that as a result of the COVID19 shutdowns in 2020, “politicians moved to bolster U.S. drug manufacturing. The U.S. Biomedical Advanced Research and Development Authority (BARDA) provided a $345 million contract to provide generic medications and the raw materials intended to produce medications needed to meet COVID-19-related demand. Congressional representatives also introduced multiple bills related to moving drug manufacturing back to the United States.”

However, this is a solution that is years away from positively impacting the American Pharmaceutical marketplace, and efforts on re-shore production are sensitive to the upheavals and tumults of a stuttering financial sector.

In the meantime, there are steps that medical practices, pharmacies and hospitals can take to prepare themselves for potential supply line disruptions. Some examples include:

• Developing a domestic partnership: where you sacrifice a higher price in exchange for a premium, on-time delivery commitment.
• Making your supply chain visible:Move from paper to digital records, maintain data privacy for suppliers.
• Plan for and manage your risks:risks must be identified, assessed and ways to mitigate them must be developed. Having plans set in place to anticipate these risks, are an important piece to risk management.

Apotheca Is Already Acting

Through building and nurturing long-term relationships with manufacturers Apotheca has cultivated the tools, interoperability, and business connectivity to assist customers quickly and avoid time-consuming and therefore: costly negotiating mistakes. By the very way we do business every day, we were already preparing for a crisis that few foresaw.

It no is no longer a question of “if” another wave of COVID19 will strike. In fact, it is less a matter of waves and more a matter of waxing and waning as new strains develop and new vaccinations or countermeasures are adopted.

Here are a few points on navigating the currents:

• Decentralized, Digital record-keeping– Paper records are a key weakness in a world where contactless deliveries and real-time tracking are becoming more and more commonplace.
  • The potential for disruption of manufacturing and transportation of temperature-sensitive materials makes this even more critical.
  • In-person presence to physically interact with shipments may not always be possible, this can cause supply-chain to collapse if digital tracking is not precise.
• Managing Costs– There is so much uncertainty right now in the wake of a tumultuous Presidential election regarding freight and fuel costs, labor rates, technology costs, and regulatory changes that every step must be taken to manage costs. Through platforms like TMS (Transportation Management Systems) and YMS (Yard Management Systems), professionals gain the necessary transparency into the shipping process to enable them to streamline procedures and keep costs low.
• Advance Supply Chain Management– The regulatory landscape that protects pharmaceutical distributors and patients is vast and complex. The regulatory powers of the Drug Supply Chain Security Act (DSCSA) is exercised by authorities to target-controlled medicines as they travel the supply chain and provides traceability through electronic means to eliminate illegal transactions. Also the Controlled Substance Suspicious Order Monitoring (SOM) programs protect patients, distributors and practices alike by requiring mandatory reporting of suspicious activities.
• Leveraging Relationships for Our Clients – Apotheca possesses the history and relationships to help you navigate successfully. Since its’ founding in 1876 the HDA or Healthcare Distribution Alliance “has helped members navigate regulations and innovations to get the right medicines to the right patients at the right time, safely and efficiently. HDA’s members include 36 national, regional and specialty primary distribution companies who are not just distributors but are technology innovators, information management experts, security specialists, and efficiency professionals. Their expertise streamlines the supply chain to ensure safety and efficiency, while also achieving cost savings for our nation’s healthcare system.”

Apotheca Wholesale Pharmaceuticals is well equipped and ideally suited to help your business wade through the uncertain changes that 2021 will bring.

Contact us today at Customerservice@apothecainc.com or call us at 602-252-5244.