DEA, FDA coordination issues and ADHD drug shortages

An article in the New York Times (Dec 31, 2011) describes shortages of ADHD drugs and root causes. The Drug Enforcement Agency (DEA) , concerned about use of ADHD drugs among college students as a memory stimulant, forecasts overall demand and allocates supply quotas to manufacturers. Individual manufacturers use that quota to choose production quantities of specific branded vs generic drugs. The result – profit maximizing choices by drug manufacturers have decreased the amount of generic drugs, thus causing shortages of affordable generics. The Food and Drug Administration (FDA) is responsible for managing drug availability, but is powerless to solve the issue. Should drug quotas be lifted so that demand can be met ? Should enforcement move from supply control to demand regulation ? Should manufacturers be required to trace the drugs across the supply chain to guarantee effective use ?

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About aviyer2010

Professor
This entry was posted in Collaboration, Operations Management, Service Operations, Supply Chain Issues and tagged , , , , , , , . Bookmark the permalink.

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