According to a new industry report, the US experienced the most severe pharmaceutical shortage crisis in a decade last year, with 125 effective drug shortages monitored by the US Food and Drug Administration (FDA) as of the end of 2023.

The independent medical standard-setting organization, the United States Pharmacopeia (USP), said in its first drug shortage report this month that the severity and duration of drug shortages are worsening.

US Drug Shortage Data by Year

The non-profit organization said that drug shortages in 2023 lasted an average of more than three years, compared to about two years in 2020.

Average Duration of Drug Shortages in the United States

As of the end of 2023, nearly a quarter (27) of the 125 drugs in short supply had been in short supply for more than five years. At the same time, the shortage of adrenaline injection, lidocaine hydrochloride injection and other drugs has lasted for more than ten years.

According to the USP report, drug shortages have a broad impact, but cheaper drugs are more likely to be in short supply.

USP data showed that most drugs, including more than 50% of injections in short supply, cost less than $5, and 66% of solid oral drugs in short supply cost no more than $3.

For many years, injectable drugs have accounted for a large proportion of drugs in short supply, including more than 53% of new short-supply drugs in 2023 are generic sterile injectables.

In 2023, the average price of sterile injectables in short supply was nearly 8.5 times lower than that of non-shortage sterile injectables.

According to the USP report, 91% of generic sterile injectables were at “serious shortage risk” in 2023, including 58% of recently shorted injectables.

Anthony Lakavage, Global Head of External Affairs for the USP, said: “Economic pressures, particularly the very low prices of many generic drug manufacturers, and the frequent breach of contracts, make our generic drug supply chain fragile.”

Lakavage said:"It is critical to stabilize the market when we are dealing with the complex situation of drug shortages."

At the same time, more and more pharmaceutical companies are adopting product discontinuation strategies in adverse price dynamics. In 2023, 140 drugs were taken off the market, a 40% increase from a year earlier.

"Danger" and "opportunity" coexist.

Drug shortages have also spawned new business opportunities. In January of this year, health assessment platform Ininsto health launched the drug search service Medfinder to help clients deal with the sustained shortages of Adderall and other drugs.

Customers pay up to $180 for Insito Medfinder's services, which hire freelancers from countries such as the Philippines to find drugs.

Insito Medfinde's co-founders, Peter Daggett and Parth Shah, said many people asked them to help find Adderall and other stimulants, as well as popular diabetes and weight loss drugs made by Novo Nordisk (NVO.US) and Eli Lilly (LLY.US).

Adderall is made by Teva Pharmaceutical Industries (TEVA.US), Amneal Pharmaceuticals (AMRX.US) and Novartis AG's subsidiary Sandoz, and has been in short supply for nearly two years.

Meanwhile, Novo Nordisk A/S and Eli Lilly and Co are increasing production and seeking acquisitions to meet the strong demand for their weight loss drugs on the market.