| Literature DB >> 28658307 |
Kati Heiskanen1, Riitta Ahonen1, Risto Kanerva2, Pekka Karttunen3, Johanna Timonen1.
Abstract
The aim of this study was to explore the reasons behind medicine shortages from the perspective of pharmaceutical companies and pharmaceutical wholesalers in Finland. The study took the form of semi-structured interviews. Forty-one pharmaceutical companies and pharmaceutical wholesalers were invited to participate in the study. The pharmaceutical companies were the member organizations of Pharma Industry Finland (PIF) (N = 30) and the Finnish Generic Pharmaceutical Association (FGPA) (N = 7). One company which is a central player in the pharmaceutical market in Finland but does not belong to PIF or FGPA was also invited. The pharmaceutical wholesalers were those with a nationwide distribution network (N = 3). A total of 30 interviews were conducted between March and June 2016. The data were subjected to qualitative thematic analysis. The most common reasons behind medicine shortages in Finland were the small size of the pharmaceutical market (29/30), sudden or fluctuating demand (28/30), small stock sizes (25/30), long delivery time (23/30) and a long or complex production chain (23/30). The reasons for the medicine shortages were supply-related more often than demand-related. However, the reasons were often complex and there was more than one reason behind a shortage. Supply-related reasons behind shortages commonly interfaced with the country-specific characteristics of Finland, whereas demand-related reasons were commonly associated with the predictability and attractiveness of the market. Some reasons, such as raw material shortages, were considered global and thus had similar effects on other countries.Entities:
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Year: 2017 PMID: 28658307 PMCID: PMC5489167 DOI: 10.1371/journal.pone.0179479
Source DB: PubMed Journal: PLoS One ISSN: 1932-6203 Impact factor: 3.240
The interview guide.
| Main topic | Sub questions of the main topic |
|---|---|
| The pharmaceutical market in Finland | Are there some characteristics in the pharmaceutical market in Finland that differ in comparison to other countries? Please describe these characteristics. How do these characteristics affect the availability of medicines in Finland? Are some of these characteristics especially problematic? Why? |
| The pharmaceutical distribution chain in Finland | Are there some characteristics in the pharmaceutical distribution chain in Finland that differ in comparison to other countries? Please describe these characteristics. How do these characteristics affect the availability of medicines in Finland? Are some of these characteristics especially problematic? Why? |
| The reasons behind medicine shortages | What are the most crucial reasons behind medicine shortages in Finland? Are some of these reasons especially problematic? Why? What are the most crucial reasons behind medicine shortages in your company? Which of the reasons behind the medicine shortages mentioned are global? Why? What suggestions can you make that would reduce medicine shortages and/or improve the availability of medicines in Finland? How about globally? |
Suggested reasons behind medicine shortages based on the literature [4–5] and the categories and classifications formed in this study.
| Suggested reasons behind medicine shortages based on the literature | Categories and classifications formed in this study | |
|---|---|---|
| Supply side | Batch recall and deficient quality assurance Information management Inventory and stock practices Manufacturing issues Raw and bulk material issues Regulatory issues Wholesale and distribution issues | Communication and monitoring Logistics and distribution issues Manufacturing issues Pharmaceutical market structure Regulatory issues |
| Demand side | Changes in demand Non-traditional demand | Changes in demand Non-traditional demand |
Reasons behind medicines shortages from the perspective of pharmaceutical companies and pharmaceutical wholesalers in Finland.
| Reason | n | |||
|---|---|---|---|---|
| Pharmaceutical market structure | ||||
| Small market size | 29 | |||
| Long delivery time | 23 | |||
| Dependence on foreign manufacturing | 22 | |||
| Limited number of operating companies | 19 | |||
| Small language area with two native languages and specific packaging requirements | 16 | |||
| Mandatory reserve supplies | 13 | |||
| Logistics and distribution issues | ||||
| Small stock size | 25 | |||
| Geographical position and long distances | 12 | |||
| Error in distribution | 5 | |||
| Manufacturing issues | ||||
| Long or complex production chain | 23 | |||
| Raw material shortage | 21 | |||
| Production issues | 19 | |||
| Capacity issues | 18 | |||
| Quality and process issues | 16 | |||
| Changes in marketing authorization holder | 13 | |||
| Changes at production site | 7 | |||
| Natural disaster | 3 | |||
| Regulatory issues | ||||
| Tightened regulation by the authorities | 16 | |||
| Communication and monitoring | ||||
| Inadequate communication and monitoring and human errors | 3 | |||
| Changes in demand | ||||
| Sudden or fluctuating demand | 28 | |||
| Structure of demand | ||||
| Business decisions | ||||
| Low price level or low profitability in Finland | 21 | |||
| Prioritization of countries or markets | 19 | |||
| Prioritization of pharmaceutical companies | 6 | |||
| Spot trade | 5 | |||
| Hospital trade and tenders | 18 | |||
| Reimbursement issues | 13 | |||
| Generic substitution and reference price system | 7 | |||
| Non-traditional demand | ||||
| Parallel trade | 6 | |||
| Perceived limited financial purchasing capability | ||||
| Limited willingness and capability to pay | 4 |
1 A total of 30 interviews were conducted. “n” refers to the number of spontaneous mentions of each reason behind medicine shortages in the interviews. Each individual reason was quantified once per interview, regardless of any multiple mentions in the same interview.
a The time elapsed from the pharmaceutical companies ordering the medicine from headquarters or from the manufacturing site to receiving it in Finland may vary from a few months up to 24 months
b There are two native languages in Finland: Finnish and Swedish. Due to this, medicine marketed and sold in Finland has specific package requirements that require the use of both native languages in the packaging
c Pharmaceutical companies are obliged to stock certain groups of medicinal products (such as antibiotics, analgesics and cardiovascular medicines) equivalent to 3, 6 or 10 months’ domestic sales depending on the medicine group
d In any or all parts of the distribution network
e A form of trade where a pharmaceutical company launches a small medicine batch that is sold at a low price and then exits the market without taking long-term responsibility for the availability of the medicine
Citations of the interviewees on the most common reasons behind medicine shortages in this study.
| Reason behind the shortage | Citation |
|---|---|
| Long delivery time | “the supply chain, which is usually very long, means delivery times from the point you notice you need the goods to producing the raw materials, producing and analyzing medicines and so on, can easily be six to nine months, in fact, six months is usually the very minimum” (interviewee 22) |
| Limited number of operating companies | “we have more and more situations in which there are only a few suppliers of some crucial active substance or excipient. That makes it (the supply chain) very vulnerable” (interviewee 5) |
| Small stock size | “companies are not keen to maintain high stock levels, and new batches are not produced until the previous batch is exhausted. The margin is kept quite small, of course, because money is tied up in stocks” (interviewee 14) |
| Long or complex production chain | “most of the subcontractors producing raw materials are actually outside Europe, --- though even if they were located in Finland, much of their work is outsourced from elsewhere. These issues may sometimes severely compromise the availability of products” (interviewee 27) |
| Raw material shortage | “raw material issues are the reasons behind shortages at global and production levels. In some cases, medicines have not been imported into Finland quickly enough --- the manufacturer has not received some raw material or other substance that is necessary in the production of the product in question” (interviewee 21) |
| Capacity issues | “companies are forced to seek profitability from every step of the process --- which also affects availability --- previously, the companies had more capacity --- nowadays, the pharmaceutical industry generally seeks to maximize production capacity so that no extra capacity is available” (interviewee 5) |
| Sudden or fluctuating demand | “once our competitor has shortages and they have supply issues, our sales explode and exceed all predicted levels --- we can’t respond to this need” (interviewee 1) |
| Low profitability or low price level in Finland | “once the competitive tender procedures continue long enough and the rules become strict enough, companies have to start thinking about what they can tender safely” (interviewee 7) |
| Hospital trade | “one particular feature that definitely affects the availability of medicines is the hospital trade and the length of the contract periods. As contract periods last two years, nowadays even three years, once your medicinal product wins the tender, other suppliers are out for two-three years” (interviewee 8) |
1 Reasons mentioned in at least 18 of the 30 interviews