• Advertise
  • Contact Us
  • Supplier Directory
  • SCB YouTube
  • About Us
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Parcel & Express
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Robotics
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Customer Relationship Management
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • Green Energy
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • Sourcing/Procurement/SRM
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Management & Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Warehouse Automation
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • WHITEPAPERS
  • VIDEOS
Home » Experts Believe Cheap Generic Drugs Are Hurting the U.S. Supply Chain

Experts Believe Cheap Generic Drugs Are Hurting the U.S. Supply Chain

A HAND WEARING A BLUE GLOVE CAN BE SEEN HOLDING THREE WHITE PILLS WITH A SMALL CONTAINER OF VARIOUS MEDICATIONS BELOW IT. IN THE BACKGROUND, A GREY AND RED BOX IS LABLED "CANCER DRUGS."

Photo: iStock.com/RHJ

January 19, 2024
SupplyChainBrain

The prices of generic drugs in the U.S. are too low to be sustainable, experts say, causing some biotech and pharmaceutical companies to experience losses or go out of business entirely.

According to The Guardian, Inmaculata Hernandez, a professor at the University of California San Diego’s Skaggs School of Pharmacology, said that the prices of generic drugs are so low that manufacturers lack incentives to continue producing the generic versions of important medications.

“Drug manufacturing is a business first, so they’re always looking to maximize their products,” said Erin Fox, the associate chief pharmacy officer at the University of Utah. “It can get to the point where it’s not profitable to make those products anymore, and manufacturers start leaving.”

As more and more manufacturers are pushed out of the pharmaceutical sector by low profit margins and even losses on some drugs, experts find the U.S. is left with a drug supply chain that is susceptible to simple disruptions as well as natural disasters.

“At the heart of the issue is the market does not reward quality and reliability,” said Marta Wosinka, a senior fellow at the Center on Health Policy at the Brookings Institution in Washington D.C. “The price pressure on manufacturers is tremendous and certain types of drugs, especially generic sterile injectables, are particularly vulnerable.”

Erin Fox claimed that the most recent drug shortages in the U.S., including short supplies of Adderall, Methotrexate injections and fludarabine, are the “worst” she has seen in a decade.

“Just about 10 years ago we had serious chemotherapy shortages and physicians having to ration care for chemotherapy,” Fox said. “We’re there again.”

    RELATED CONTENT

    RELATED VIDEOS

    Forecasting & Demand Planning Inventory Planning/ Optimization Supply Chain Planning & Optimization Quality & Metrics Sourcing/Procurement/SRM Pharmaceutical/Biotech
    • Related Articles

      Reshoring Is No Fad - It's Invigorating the U.S. Supply Chain Network

      An Urgent Call to Revive the U.S. Pharmaceuticals Supply Chain

      The U.S. Drug Supply Chain in Crisis: Solutions to Shortages

    • Related Directories

      ProcureAbility

    SupplyChainBrain

    Iran Blocks IMO Plan to Evacuate Trapped Ships, Seafarers

    More from this author

    Subscribe to our Daily Newsletter!

    Timely, incisive articles delivered directly to your inbox.

    Featured Product

    Popular Stories

    • On Demand - Webinar Descartes Tue Jun 23 2026 11a ET.png

      Descartes AI Exchange: AI Agents for Fleet Performance Management

      General SCM
    • A UNIFORMED OFFICER STANDS NEAR A HIGHWAY WITH TRUCKS ON IT

      U.S. Customs Ramps Up AI Investment in Push to Sharpen Enforcement

      Artificial Intelligence
    • On Demand Webinar - Arkieva - Wed Jun 24 2026 2p ET.png

      Shift Left Planning: Why Many Plans Fail to Execute—and How to Fix It

      Webinars
    • TWO WORKERS IN HI-VIS VESTS AND HARDHATS CONSULT A BANK OF COMPUTER SCREENS

      How a Poor Hiring Process Leads to High Turnover in Supply Chain

      HR & Labor Management
    • HANDS TYPE ON A KEYBOARD UNDER A SUPER IMPOSED DIGITIZED MAP OF THE WORLD, ALONG WITH IMAGES OF A SHIP, A SHOPPING CART AND OTHER SYMBOLS OF INTERNATIONAL LOGISTICS

      Five Demand-Forecasting Mistakes Supply Chain Leaders Are Rethinking

      Technology

    Digital Edition

    2026 esg cover main scb q2 2026 cover

    SupplyChainBrain 2026 ESG Guide: ESG — The Supply Chain’s Biggest Secret

    VIEW THE LATEST ISSUE

    Case Studies

    • Recycled Tagging Fasteners: Small Changes Make a Big Impact

    • A GRAPHIC SHOWING MULTIPLE FORMS OF SHIPPING, WITH A HUMAN STANDING AT THE CENTER, TOUCHING A SYMBOLIC MAP OF THE WORLD

      Enhancing High-Value Electronics Shipment Security with Tive's Real-Time Tracking

    • A GRAPHIC OF INTERLACING HONEYCOMBED ELEMENTS REPRESENTING GLOBAL BUSINESS TRANSACTIONS

      Moving Robots Site-to-Site

    • JLL Finds Perfect Warehouse Location, Leading to $15M Grant for Startup

    • Robots Speed Fulfillment to Help Apparel Company Scale for Growth

    Visit Our Sponsors

    4flow Arkieva Blue Yonder
    Carton Cloud CoEnterprise Dassault
    Duravant E2Open General Logistics Systems
    Hy-Tek iGPS Korber
    Lyngsoe Procurability Quinyx
    SAP Sikick Systech
    S&P Global Mobility TADA TransImpact
    US Bank Werner Enterprises WSI
    • More From SCB
      • Featured Content
      • Video Library
      • Think Tank Blog
      • SupplyChainBrain Podcast
      • Whitepapers
      • On-Demand Webinars
      • Upcoming Webinars
    • Digital Offerings
      • Digital Issue
      • Subscribe
      • Manage Email Preferences
      • Newsletters
    • Resources
      • Events Calendar
      • 2026 Event Coverage
      • SCB's Great Supply Chain Partners
      • Supplier Directory
      • Case Study Showcase
      • Supply Chain Innovation Awards
      • 100 Great Partners Form
    • SCB Corporate
      • Advertise on SCB.COM
      • About Us
      • Privacy Policy
      • Contact Us
      • Data Sharing Opt-Out

    All content copyright ©2026 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

    Design, CMS, Hosting & Web Development :: ePublishing