AUSTRALIA could soon be plagued by more critical drug shortages if health authorities do not start preparing for a trend towards more supply problems, experts say.
As Australia's drug regulator yesterday worked to find sources of emergency supplies of penicillin because the country was down to one week's supply, a team of doctors and pharmacists said Australia was not prepared for shortages of many essential medicines.
It also emerged last night that the Therapeutic Goods Administration had issued a "please explain" to CSL because of concerns it waited until last week to notify the regulator of its penicillin shortage several weeks after it knew it was facing supply problems in late August.
"The TGA has written to CSL requesting urgent information about the supply shortage and what CSL knows about its causes, when it became aware of it, and what actions it has taken to deal with it," a TGA spokeswoman said.
Writing in the Medical Journal of Australia yesterday, Dr Simon Quilty and colleagues from John Hunter Hospital in Newcastle said the penicillin crisis was likely to be repeated with other drugs because of Australia's management of its stocks and position in a complex market and supply chain. They said a recent stocktake of drugs in a NSW health service revealed many in limited supply. Of 378 essential medicines, 3 per cent had less than seven days' reserve, 24 per cent had less than 30 days' reserve, and 26 per cent had more than three months' supply.
The Age believes that the TGA is working to secure supplies of several crucial drugs, including penicillin. However, a spokeswoman would not reveal details of the wider problem last night.
Dr Quilty said that while Australia had not experienced any other significant medication shortages to his knowledge this year, supply problems had increased globally in recent years, particularly in the US, which had 198 drug shortages over the past three months more than double what it experienced for the entire year of 2007. He said the reasons included increased demand, manufacturing delays, recalls, shortages of ingredients, natural disasters and the realities of business in a competitive international market.
Given some medicines are produced at only a few sites worldwide, mainly in India and China, Dr Quilty said supply chains could easily be broken, leaving Australia in need.
"Australia, which produces less than 5 per cent of the pharmaceuticals it consumes, is particularly vulnerable," he said.
Dr Quilty said the penicillin shortage had shown that Australia had no official mechanisms in place to predict and prepare for drug shortages. He said a monitoring system should be set up to forecast problems, along with laws that compel manufacturers and wholesalers to report compromise of manufacture or supply.
The TGA should also develop a list of essential drugs to be watched as a priority.
"[Pharmaceutical supply] is likely to become a more prominent global problem," Dr Quilty and his colleagues wrote.
A TGA spokeswoman last night said it had identified several potential suppliers of intravenous penicillin and was working with Australian suppliers to expedite supply of the drug to Australia. New supply is expected to be secured within weeks. She said it was normal for the TGA to manage fluctuating supplies of drugs and that it had systems in place.
Frequently Asked Questions about this Article…
What caused the recent penicillin shortage in Australia and who was involved?
The article says Australia faced a penicillin shortage after supply problems emerged at CSL, which reportedly waited several weeks before notifying the Therapeutic Goods Administration (TGA). The TGA has asked CSL for urgent information about when it knew of the problem, its causes and actions taken. The shortage reflects broader supply-chain pressures rather than a single technical cause.
Why are experts warning of more medicine shortages and what are the main supply chain risks?
Doctors and pharmacists told the Medical Journal of Australia that global supply pressures — including increased demand, manufacturing delays, recalls, ingredient shortages, natural disasters and concentrated production in a few sites (mainly India and China) — raise the risk of repeated medicine shortages. Because Australia produces less than 5% of the pharmaceuticals it consumes, experts say the country is particularly vulnerable.
What has the Therapeutic Goods Administration (TGA) done to manage the penicillin shortage?
According to the article, the TGA has identified several potential suppliers of intravenous penicillin, is working with Australian suppliers to expedite supply, and expects new stock to be secured within weeks. The TGA also issued a formal request for information to CSL about the shortage.
How prepared is Australia to predict and respond to drug shortages?
Experts in the article say Australia currently lacks official mechanisms to forecast and prepare for drug shortages. A recent NSW stocktake found limited reserves for many medicines (of 378 essential medicines, 3% had under seven days' reserve and 24% had under 30 days), and doctors called for a monitoring system and compulsory reporting laws to improve preparedness.
What policy fixes are experts recommending to prevent future medicine supply problems?
The article reports experts recommending a formal monitoring system to forecast shortages, laws that compel manufacturers and wholesalers to report manufacturing or supply compromises, and a prioritized list of essential drugs the TGA should watch closely.
Which types of medicines are most at risk of running short in Australia?
The article highlights essential medicines produced at only a few global sites — such as some injectables including intravenous penicillin — as most at risk. Limited domestic production and reliance on suppliers in India and China make those drugs particularly vulnerable to supply-chain disruptions.
How long might the current penicillin shortage last and when is new supply expected?
A TGA spokeswoman told the paper that new supply of intravenous penicillin is expected to be secured within weeks as the regulator has identified potential suppliers and is expediting deliveries to Australia.
What should everyday investors know about pharmaceutical supply risks highlighted by this article?
The article underscores that supply-chain fragility, regulatory scrutiny (for example the TGA's inquiry to CSL), and heavy reliance on overseas manufacturing can create operational and reputational risks for pharmaceutical companies. Investors should be aware that shortages can prompt urgent regulatory action, public concern and calls for policy changes, all of which can affect companies involved in manufacturing, distribution and supply management.