Widespread industry supply challenges:
91% of generic sterile injectables faced shortages (2023)1
50% increase in the duration of shortages—now averaging more than 3 years (2020-2023)1
40% increase in product discontinuations (2023 vs 2022)1
5% to 20% increase in hospital budgets annually due to drug shortages2
What's driving supply shortages?
While natural disasters, public health crises, and demand spikes are often cited as causes of drug shortages, the underlying issues are more complex.1
Today's challenges stem from the interplay of 3 key economic factors:
Manufacturing complexity
Producing generic sterile injectables is a highly regulated, intricate, and costly process that demands continuous investment to uphold strict quality standards. Due to their generic nature, these products are typically sold at low prices, adding further economic challenges for manufacturers.3
Buyer consolidation
Consolidation of Group Purchasing Organizations (GPOs) and wholesalers—key entities that hospital systems rely on for medication procurement—has led to a small group of buyers with significant purchasing power. This dynamic enables them to pressure manufacturers to further reduce prices.3
Pricing pressures
Many hospitals are facing higher operating costs. To help navigate drug costs and shortages, hospitals may go outside their purchasing agreements with suppliers. Contracts, however, give manufacturers greater predictability and help ensure volume.3,4
What does this mean?
Today's low-price market for sterile injectables does not support the level of investment required to manufacture them.
- As prices continue to drop, some manufacturers can no longer sustain quality standards or production costs
- While the focus on controlling health care costs is an important goal, these market conditions have created unintended consequences to the sustainability of sterile injectable manufacturing, leading to consolidation of manufacturers and/or product discontinuations and, ultimately, increasing the likelihood of drug shortages
Our role
Pfizer recognizes the critical impact of industry-wide supply shortages on both healthcare providers and patients. We are doing our part to address generic sterile injectable shortages and ensure long-term supply availability.
As part of our ongoing efforts, we are taking a strategic, 3-pronged approach:
Investing in world-class manufacturing capabilities
We have invested more than $2 billion since 2015 in our 9 manufacturing and distribution sites, including 6 in the US, to ensure a reliable, high-quality supply of essential medication.*
Producing the broadest portfolio of generic sterile injectables in the US
sterile injectable molecules
molecules offered exclusively
delivery systems
medications on WHO’s Essential Medicine List
Championing efforts that support supply sustainability and patient care
How you can help
Pfizer remains committed to investing in supply reliability and resiliency.
Yet, we must recognize that manufacturing efforts alone are not enough to solve the broader market and economic factors underlying the drug shortage crisis. Change can only happen together.
Purchasing behaviors play a crucial role.
While seeking the lowest price may be appealing in the short term, it can worsen drug shortages in the long term. Here's what you can do:
API=active pharmaceutical ingredients.
*As of 2024.
References: 1. The United States Pharmacopeia. USP annual drug shortages report: economic factors underpin 2023 shortages. Accessed February 20, 2025. https://www.usp.org/supply-chain/drug-shortages 2. ASHP 2023 drug shortages survey report severity and impact of current drug shortages. Accessed February 20, 2025. https://www.ashp.org/-/media/assets/drug-shortages/docs/ASHP-2023-Drug-Shortages-Survey-Report.pdf 3. Data on file. Pfizer Inc., 2024. 4. American Hospital Association. America’s hospitals and health systems continue to face escalating operational costs and economic pressures as they care for patients and communities. Accessed February 20, 2025. https://www.aha.org/system/files/media/file/2024/05/Americas-Hospitals-and-Health-Systems-Continue-to-Face-Escalating-Operational-Costs-and-Economic-Pressures.pdf