Thursday, November 3, 2011

WSJ: The Bush-Obama Drug Shortages

The 11/3/2011 Wall Street Journal explains how government interventions have created "The Bush-Obama Rx Shortages".

Here is the opening:
This week President Obama finally confronted a major U.S. health-care disgrace—the growing shortages of lifesaving drugs, especially anticancer therapies. For some reason the White House lumped its executive order with its "we can't wait" campaign against House Republicans, but the pity is that we will have to wait, because the only genuine fix is a liberal anathema: market prices...

The problem is compounded because Food and Drug Administration rules cause pointless delays. It takes as long as two and a half years to receive FDA manufacturing approval for a generic, so other drug makers can't ramp up production if a company cancels a product line due to these disincentives or even if the fragile supply chain for sterile injectables is contaminated and manufacture is delayed.
(Read the full text of "The Bush-Obama Rx Shortages".)

Adding yet more regulations and price controls to the current system won't solve the problem of shortages.

(Via Dr. Evan Madianos.)