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An over-reliance on international markets and a lack of price stability limiting local manufacturing have resulted in major shortage alerts.

Australia is in the grip of a drug crisis. There are currently 316 medicine shortage alerts listed by the Therapeutic Drugs Administration (TGA), with 39 listed as critical. Australia is in dire need of equine antithymocyte immunoglobulin, a drug used to prevent and treat kidney transplant rejection, antibiotic procaine benzylpenicillin and diabetes drug semaglutide. 

While supply chains were disrupted during the pandemic, experts argue warning signs have been clear for more than a decade, with Australia relying too heavily on international markets, and a lack of price stability for drugs listed on the Pharmaceutical Benefits Scheme limiting manufacturing. 

It means there are delays of months, if not years, for life-altering medication.

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Amber Schultz covers health and social affairs for Crikey. In 2022 she was awarded a Young Walkley Award for her on-the-ground coverage of the Ukrainian refugee crisis, and has been shortlisted for four other Young Walkleys. In 2021 she was awarded the 2021 Mumbrella Young Writer of the Year for her coverage of sexual violence, and in 2018 completed the Jacoby-Walkley scholarship. She holds master's degrees in journalism and international relations.

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We need an urgent review into Australia’s drug supply chain

ah, if only we had some sort of Commonwealth Laboratory for manufacturing Serums and such …

Like the Commonwealth bank (1991), another triumph (1994) of PJK, the PM for privatistion.

CSL only manufactured limited items. Did you miss the point “that locally manufacturing the “thousands” of medicines approved for use in Australia wasn’t practical or economic”?

.. Ross*, a Melbourne-based physician with type 2 diabetes: “It’s really frustrating,” he said. “You would have thought we’re a civilised society and you should have access to these things.”

A civilised society would guarantee access to essential pharmaceuticals? We’re a neoliberal mob and money is what counts above all else.

How can you guarantee access when the drugs are imported? Did you miss the point “that locally manufacturing the “thousands” of medicines approved for use in Australia wasn’t practical or economic”?

lexusaussie, may I suggest that a bare modicum of research before posting would have been useful on this topic?

Prior to CSL being privatised by the Keating Labor government in 1994, it was manufacturing blood products, as well as vaccines and antibiotics through its Pharmaceutical Division. Where would we be today if still under our ownership and control, employing our best and brightest?

The link provided should enlighten – “The Privatisation of CSL” by Dr Clive Hamilton & Dr John Quiggan (June 1995).

https://australiainstitute.org.au/wp-content/uploads/2020/12/DP4_8.pdf

Ian Harvey, may I suggest that if you don’t know anything about the economics of manufacturing that you do a bare modicum of research yourself?

CSL was by no means a manufacturer covering anywhere near the full spectrum of medication. Blood products, vaccinations and antibiotics are the tip of the iceberg. BTW, CSL is still around and doing quite well today.

Costs in manufacturing of any product need to be contained hence the reliance on imported products. Scale is a requirement of anything other than bespoke products for a limited audience. Export markets are a key function of any manufacturing (Australia’s tiny population supports 2 parts of 3/8ths of SFA in reality) to assist in cost control.

Importing at lower prices also benefits our PBS which has limited funding (nothing can be unlimited in reality).

While manufacturing in Australia is a great concept, business and economic reality makes it untenable as it is simply not affordable due to high costs.

You may not agree but that is the reality of it, like it or not.

“Wasn’t practical or economic”.

Yes, it is far more “practical and economic” to get slaves to manufacture them overseas… with all that “practical and economic” contamination. We’ve heard this pathetic neo-liberal argument over the last 30 years that has seen us now fallen into this disgusting mess. Here’s a clue: They’re lying to us.

Disclaimer: If I don’t get regular lamotrigine I have seizures. I don’t have a choice in the matter. You might think having a seizure is nothing, but I’ve had to wait 2 years to get my driver’s license back since my last seizure. Nearly biting my tongue off wasn’t fun either.

“…the Australian Government did absolutely nothing with the warnings that have been given over the last ten years.’

If the LIb/Nats all died tomorrow, that should go on their tombstone.

Supply lines are like dominoes. Drugs, petrol, you name it. The only things we can be sure of having are roast lamb, steak sandwiches and do-nothing politicians.

We can’t even guarantee a domestic gas supply line… with our own gas. Orstraya, the stupid country.

Shortages are mostly due to the neoliberal “just in time” supply chain system. If a “just not quite in time” event occurs, oopsies, no drug. Here at Smactho-Glix-Kline we will be making paracetamoxyfrusebendroneomycin next Wednesday (if you are not in medicine Google it, if you are in medicine you’ll probably already know it). That will be the only production run this quarter. If any of the ingredients don’t turn up on Monday/Tuesday, we’ll cancel the run and announce there is a “regretable shortage” of the drug due to a “production issue”. And wait till next quarter’s run. Even though the drug is on the WHOs list of essential medicines.

The answer is simple. Make just in time uneconomic. A shortage of a drug on the WHO essential medicines list and every regular customer gets free supply of their usual quantity for an equivalent time of the shortage once supply resumes. If this is introduced most drug shortages will almost instantly become a thing of the past. Money talks. Particularly at big pharma.

Thank you so much for that. I hadn’t heard of the Amateur Transplants before, hilarious!

There are cures for everything from AIDS to pubic lice in……

Good luck with that. JIT is used in all manufacturing for one simple reason – it removes the cost of having large inventories of materiel on hand. Big Pharma won’t pay, the patient will as costs will rise if JIT is scrapped.

Better for costs to rise than the death rate, eh?

Do you want a health system like the US has where things like Insulin are over US$30 per dose? Everything costs money but a lot of Australians think that it either grows on trees or a genie can wish it into existence. Everything needs to be paid for.

That’s the whole point. JIT is used to reduce cost. SO put a risk and cost impost on not holding adequate supply.

Good luck with that. Won’t happen.

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