Talking about the global drug shortage problem, Huang Chin-Shun, the President of the Federation of Taiwan Pharmacists Associations, expressed that the government should not only address the issues concerning drug prices, but also reshape the structure of the pharmaceutical industry.  This view point was echoed by Su Tung-Mao, the President of the Taiwan Pharmaceutical Manufacturers’ Association (TPMA). He pointed out the devastating impact of NHI drug price cuts on drug manufacturers who are currently bearing the financial burden of increasing manufacturing costs.  As a result, many manufacturers are preparing to leave the Taiwan market.  Su also mentioned that the National Defence Department has asked drug companies to stockpile large quantities of drugs in preparation for war.  This requirement put considerable pressure on drug manufactures.

Su Mei-Hui, the Secretary General of the TPMA, said that many hospitals intend to order drugs in bulk and to return the products when their remaining shelf-life is shorter than 8 months.  Drug companies have to destroy all returned drugs in order to comply with the PIC/S and the GMP requirements.  This practice results in a huge waste of drugs.

As the drug shortage problem is worsening, hospitals are less likely to return the items affected by supply shortages.  Su Mei-Hui urged the government to limit hospital’s inventory level to within 110% of the same period last year so as to alleviate the drug shortage problem.

Due to the war in Ukraine, the drug shortage problem has become a global issue.  Su Tung-Mao said that drug companies are trying hard to secure new supply sources of raw materials.  However, as the manufacturing cost keeps going up, the NHI reimbursement price keeps falling.  If the NHIA only stops cutting prices when there is a drug shortage, it will just exacerbate the shortage problem.   The NHIA must review the items which are reimbursed at a “floor price” so as to sustain the supply chain and the industry.

Su Tung-Mao also mentioned that under the Drug Expenditure Target (DET) system, the NHI carries out an annual drug price cut except during the pandemic period. However, for some drugs, their spending has grown faster than the DET growth.  Drug manufacturers are experiencing the difficulty with high cost and low reimbursement price.  As a result, many of them abandoned the Taiwan market, further worsening the shortage problem. 

Su Tung-Mao hence urged the government to set a special budget for expensive new drugs and new medical technologies, instead of cutting the prices of generic drugs to cover the budget shortfall.  It is very unfair, stressed Su.

【2023-03-14 / United Daily】