Here’s why some countries are experiencing medicine shortages – and what can be done to ensure supply

(Credit: Unsplash)

This article is brought to you thanks to the collaboration of The European Sting with the World Economic Forum.

Author: Shyam Bishen, Head, Shaping the Future of Health and Healthcare, Member of Executive Committee, World Economic Forum, Antonio Spina, Lead, Health and Healthcare, World Economic Forum


  • Common remedies, especially generics including antibiotics, have been running scarce in various regions worldwide – causing concern among patients and consumers, the government and industry.
  • A confluence of factors is driving the shortfall, including increased infections, inflation, supply-chain disruptions and regulations.
  • While public policy actions may be taken as a result, manufacturers and healthcare leaders can take the lead to ensure sustainable supply and emerging, innovative partnership models could also play a role in establishing resilience.

When seasonal bugs have you running to the clinic or pharmacy for medicines to bring down your temperature or soothe your child’s cough, it can be frightening to hear that they can’t help you because they are out of stock.

Europe, for instance, is experiencing shortages of common medicines. In a survey of medicine shortages carried out between 14 November and 31 December 2022 by the Pharmaceutical Group of the European Union (EU), 100% of the 29 member countries reported experiencing shortages of medicines among community pharmacists and 76% said that shortages were worse than the previous year, 2021. About 79% of respondents reported shortages of anti-infectives for systemic use; while 76% found it difficult to get hold of drugs for respiratory problems; and a range of other conditions, including cardiovascular and gastrointestinal were also highlighted.

Discover

How is the World Economic Forum bringing data-driven healthcare to life?

The application of “precision medicine” to save and improve lives relies on good-quality, easily-accessible data on everything from our DNA to lifestyle and environmental factors. The opposite to a one-size-fits-all healthcare system, it has vast, untapped potential to transform the treatment and prediction of rare diseases—and disease in general.

But there is no global governance framework for such data and no common data portal. This is a problem that contributes to the premature deaths of hundreds of millions of rare-disease patients worldwide.

The World Economic Forum’s Breaking Barriers to Health Data Governance initiative is focused on creating, testing and growing a framework to support effective and responsible access – across borders – to sensitive health data for the treatment and diagnosis of rare diseases.

The data will be shared via a “federated data system”: a decentralized approach that allows different institutions to access each other’s data without that data ever leaving the organization it originated from. This is done via an application programming interface and strikes a balance between simply pooling data (posing security concerns) and limiting access completely.

The project is a collaboration between entities in the UK (Genomics England), Australia (Australian Genomics Health Alliance), Canada (Genomics4RD), and the US (Intermountain Healthcare).

Supply challenges are being faced around the world

But medicine shortages are not unique to the EU region. The UK is experiencing an HRT shortage. US hospitals are reporting supply problems with liquid ibuprofen; while a sudden increase in ADHD diagnoses in the US has led to an unexpected shortage in the drugs used to treat it there. In Mexico, chronic medicine shortages are so dire that many prescriptions couldn’t be fulfilled in 2022, while across Asia, sudden supply drops were linked to disruptions in China and in Australia, the TGA has confirmed various shortages have been seen, and rural areas may be worst affected.

Why are we suddenly seeing such serious medicine shortages?

There are several reasons for the medicine shortages. COVID-19 lockdowns limited the normal circulation of seasonal bugs. This weakened our immune systems and led to higher-than-normal outbreaks of seasonal illnesses, which has increased the annual average demand for medicines that should alleviate them. Pharmaceutical companies could not quickly meet these unexpected demands, as excess capacity is limited to control costs.

Meanwhile, the war in Ukraine continues to impact supply chains and the knock-on effect of high inflation and energy prices have hit generic drug manufacturers, who are sometimes subjected to pricing regulations, particularly hard.

Furthermore, to protect their limited medicine supplies, some countries have temporarily blocked the parallel trade of medicines to other countries. And, once an over-the-counter drug shortage is announced on the news, consumers begin stockpiling.

There is also the problem of over-prescribing. It is estimated, for example, that the UK’s National Health Service loses as much as £300 million a year due to unused or partially used medication that cannot be recycled or re-used.

Manufacturers can innovate to improve supply security

Some medicine shortages are down to misallocation, with some areas of a country being over-supplied with a particular medicine and other areas experiencing shortfalls. The effective use of data and analytics is key to helping to improve access to medicines globally and better-managing supply and demand to pharmacies and individual patients. The National Academies, for example, recently raised the concept of a public database on medical supplies.

As documented in a 2020 USP report, ‘Increasing transparency in the medicines supply chain‘, real-time data from pharmacies and hospital systems would provide a better understanding of the demand for medical products. It states: “These considerations could include strategies for leveraging electronic health records to enable hospital systems or clinics to report information about medical product demand, without disclosing protected patient information.” Improved access to critical data could also unlock opportunities with artificial intelligence (AI) / machine learning (ML) to transform supply chain efficiency.

In production, generics companies can also harness smart technology to cut manufacturing costs by up to 20% while boosting production, states a Bain and Company briefing. “Pharma executives expect smart connected factories to produce total savings of 20% or more, while improving quality and making deliveries more reliable. Specifically, they forecast a 17% reduction of costs related to poor quality, a 15% decline in the cost of converting raw materials into drugs and a 14% increase in delivery reliability.”

There is also scope for generic drug companies to reconfigure strategically, finds the KPMG report Generics 2030: Three strategies to curb the downward spiral. To regain some control over the supply chain, the report suggests generic companies look to mergers and acquisitions to increase scale or to integrate vertically and redesign the supply chain to reduce dependence on distributors and active pharmaceutical ingredient (API) suppliers; and invest in innovation to improve their products.

Shortening supply chains and trying to produce or procure more active ingredients locally, in addition to relying on go-to countries such as India and China, could also strengthen supply and make it easier to increase production in times of additional need. This has the added benefit of reducing pharmaceutical companies’ carbon footprints and limiting their exposure to macroeconomic challenges.

https://cdn.jwplayer.com/players/8R1RkW8e-ncRE1zO6.html

A prescription for public-private partnerships?

While generics manufacturers and partners can work on any aspects of the above unilaterally, new multi-stakeholder models are increasingly being explored. One example is Civica Rx, a purpose-driven US non-profit drug company founded in 2018 with an explicit objective of preventing drug shortages. Civica has relied on its extensive provider consortium covering 1/3 of US hospital beds, and prolific partnership building with medical suppliers, such as AmerisourceBergen, Sandoz and Hikma, as well as the US Federal Government and state governments.

A concept known as Public Benefit Corporations (PBCs) has also emerged. US-based company Phlow, for example, has partnered with other companies, such as Fresenius Kabi, and the public sector, such as HHS/ASPR/BARDA, to secure the supply of essential medicines. And Mark Cuban’s Cost Plus Drugs has partnered with providers and Pharmacy Benefits Managers (PBMs). Some have theorised that the PBC model could allow pharma to ensure greater access while still meeting business objectives. On the retail and eCommerce side, non-traditional disruptors, such as the recently launched Amazon RxPass and Walmart prescriptions, are also worth keeping an eye on for potential impacts on the ecosystem.

These developments may hint at potentially promising innovative approaches for addressing shortages. Stakeholders across pharma, healthcare providers, governments and others can seek new ways to work together to ensure a more reliable, sustainable medicine supply that ensures resilience and equitable access. These ideas warrant further exploration by leaders across regions.


Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe to get the latest posts sent to your email.

Interesting reads

© SOS Méditerranée/Anthony Jean Up to $500 million was paid in migrant smuggling fees on sea routes to Europe in 2025, according to new UN estimates.

Migrants paid up to $500 million in smuggling fees on European sea routes

This article is published in association with United Nations. The price tag for smuggling on European sea routes reached up to half a billion dollars last year, the UN Office on Drugs and Crime (UNODC) and the UN migration office, IOM, reported on Wednesday. Key points Almost half of migrants trying to get smuggled into […]
The author of this article explored other courses in different fields, but it was in medicine that she found her place. From the beginning of her studies, Valéria discovered in medical practice more than just a career: she found her vocation when she realized that caring for others also gave meaning to her own life. Driven by a genuine desire to help, the student stood out as a Teaching Assistant in Public Health, strengthening her humanized perspective. Today, she is part of the coordinating board of IFMSA UNEX MED, working in the Human Rights and Peace (SCORP) area, where she transforms empathy into action and social commitment into real impact.

Global warming will breach 1.5°C – but deep, fast cuts can still bring it back

This article is published in association with United Nations. With global temperature rise set to exceed 1.5°C above pre-industrial levels, countries “must pull out all the stops” and urgently cut emissions to minimize the overshoot and return to the internationally agreed threshold by the end of this century. The recommendation comes in the Emissions Gap […]
© Agricultural Development Association – PARC A farmer in the West Bank harvest olives in October 2025. (file)

‘Season of fear’: Escalating Israeli attacks on West Bank olive farmers, deadly strikes on Gaza

This article is published in association with United Nations. Israeli attacks on war-torn Gaza over the weekend killed at least six Palestinians, including children, despite a year-old ceasefire agreement. Meanwhile, in the occupied West Bank, settler violence continued through the ongoing olive harvest, with UN independent experts on Monday urging Israel to protect Palestinian farmers. […]
This article is published in association with United Nations.

COP17: The world has a plan to save nature. Is it working?

This article is published in association with United Nations. The UN Secretary-General has called for an end to the “war on nature”. On Monday, governments gathering in Yerevan, Armenia, will have to confront a more practical question: are they doing enough to win the peace and put the world’s biodiversity goals back on track? COP17, […]
© WHO A large-scale combined missile and drone strike hit Kyiv's Solomianskyi district on August 20, 2026.

Ukraine: Critical health supplies destroyed in ongoing Russian attacks

This article is published in association with United Nations. Ongoing and deadly Russian attacks across Ukraine are causing serious healthcare disruption, with more than $1.5 million-worth of medicines and supplies destroyed in four separate strikes on warehouses used by the UN there since July. According to the World Health Organization (WHO), 21 warehouses have been […]
© UNICEF/Niccolò Corti A child sits alone, praying, at a reception centre for migrants in Lampedusa, Italy.

World News in Brief: West African migrant crossings, Argentina takes UK to maritime tribunal, farming in Gaza, mental health update

This article is published in association with United Nations. Fewer people from West Africa are reaching Europe by sea, but the journey has not become safer, the UN migration agency (IOM) said on Tuesday. Arrivals from Mali, Senegal, Guinea and The Gambia fell by 59 per cent in the first half of 2026 compared with […]
© UN Ukraine The aftermath of a drone attack in a residential area in Kyiv on 12 October.

Ukraine: Residents killed and dozens injured in attacks on Kharkiv and Kyiv

This article is published in association with United Nations. Russian attacks in recent days on on Ukraine’s two largest cities have again killed and injured civilians, damaged homes and civilian infrastructure, the UN aid coordination office (OCHA) said on Tuesday. Aid workers and rescuers were on the ground in Kyiv and Kharkiv following aerial strikes that […]
© IOM The war in Sudan has created extreme levels of displacement, both internally and across Sudan’s borders.

‘Efficiency has limits’: UNHCR chief warns refugee protection is buckling under cuts

This article is published in association with United Nations. The money is running out faster than needs are growing: with 117 million men, women and children now forced from their homes, the UN refugee agency (UNHCR) has received just $3 billion of the $8.5 billion it needs this year – and its chief, Barham Salih, warns […]
© UNOCHA/Ramatoulaye Moussa Maz A woman walks through a camp for displaced people in Ituri Province in eastern DR Congo, where decades of violence have impacted millions, creating a humanitarian emergency.

Rise in poverty is ‘a wake-up call for the world’, UN development chief says

This article is published in association with United Nations. The number of people living in “multidimensional” poverty has risen for the first time in 15 years, reaching 1.2 billion, as families struggle to meet their basic needs.  The finding comes in the 2026 update of the global Multidimensional Poverty Index (MPI) published by the United Nations […]
© UNDP Nidaa with the chickens and ducks she raises in Gaza.

Sustaining livelihoods amid crisis in Gaza

This article is published in association with United Nations. Nidaa, Hanaa and Hanin have different stories, but share a common thread: the determination to build something of their own and keep it going despite extraordinary challenges facing them in war-ravaged Gaza. Following the devastation of the past three years, productive capacity in Gaza has been severely […]
© UNICEF/Oleksii Filippov A firefighter works on the balcony of a wrecked building in Kyiv, Ukraine.

World News in Brief: Russian attacks continue in Ukraine, Gazans shelter in flood-prone areas, keeping sight of eye health

This article is published in association with United Nations. UN human rights chief Volker Türk said on Thursday he was appalled by a wave of attacks that have killed civilians across Ukraine over the past four days.  They include a strike on two public buses in Kramatorsk on Thursday, that left at least 30 civilians dead, […]
This article is published in association with United Nations.

Ukraine: UN condemns latest attacks and calls for civilian protection

This article is published in association with United Nations. The UN Humanitarian Coordinator for Ukraine on Wednesday called for an end to attacks against civilians following further overnight strikes by Russian forces that reportedly killed at least 19 in the Chernihiv Region. Among the dead in Pryluky were five children, three of them babies, according to the […]
© UNICEF-SoP/Crickx People walk down a dusty road in the West Bank carrying belongings.

Israeli demolition in East Jerusalem displaces 69 Palestinians

This article is published in association with United Nations. Sixty-nine Palestinians – more than half of them children – were displaced on Tuesday after Israeli authorities green lit the demolition of their residential building in the At Tur area of East Jerusalem, the UN aid coordination office (OCHA) has reported. This is the highest number of […]
This article is published in association with United Nations.

‘The clock on AI regulation is ticking’, warns UN rights chief

This article is published in association with United Nations. The world is running out of time to put guardrails on artificial intelligence, UN High Commissioner for Human Rights Volker Türk warned Monday, as a “ruthless race” between companies and countries raises concerns about human safety and even humanity’s survival. Speaking in the UK at an AI […]
© UNOCHA/Alina Basiuk A school in Ukraine lies in ruins after being hit by a missile.

Ukraine war ‘a human rights catastrophe’ that must end, says Türk

This article is published in association with United Nations. Human Rights The war in Ukraine is a human rights catastrophe that is “growing and intensifying by the week” and threatening an even greater disaster across the region, UN High Commissioner for Human Rights Volker Türk said on Friday. Addressing the Human Rights Council in Geneva, Mr. […]
UN News Massive tent settlement of displaced residents extends along the damaged Gaza coastline.

Palestinians yearn for ‘a return to normal life’, says top Middle East peace envoy

This article is published in association with United Nations. The UN is continuing efforts to support Palestinians in Gaza amid major challenges to humanitarian access, reconstruction and the restoration of essential services, according to Ramiz Alakbarov, Acting UN Special Coordinator for the Middle East Peace Process. Speaking to UN News on the margins of the UN […]
©UNIFIL/Tilak Pokharel UNIFIL personnel distribute food kits to displaced families in Saida, Lebanon (file).

Lebanon: One in five children goes to bed hungry, says UNICEF

This article is published in association with United Nations. Four in five households in Lebanon struggle to afford basic necessities today, with children increasingly going without food, missing school and being pushed into work as conflict compounds years of economic crisis. “I wanted to buy clothes for my children, but I could not. I also wanted […]

World News in Brief: Deadly Myanmar strikes as Malaysia begins deportations, new emergency funding released, Gaza and West Bank update

The UN chief on Tuesday strongly condemned an airstrike that reportedly killed at least 50 people at a market in Myanmar’s Rakhine state and called for those responsible to be held to account. Forces from the military junta reportedly hit Kyauktaw township around midday on Monday, when the market’s more than 200 shops were busy […]
This article is published in association with European Investment Bank.

EU provides €61 million in humanitarian aid amidst rapidly deteriorating situation in Ethiopia

This article is brought to you in association with the European Commission. Amid fears of renewed conflict in Northern Ethiopia, the European Union is providing €61 million in humanitarian funding to help the most vulnerable people in Ethiopia affected by conflict, displacement, disease outbreaks and climate-related hazards, including the impact of El Niño. The European Union […]

Why don't you drop your comment here?

Go back up

Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe now to keep reading and get access to the full archive.

Continue reading

Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe now to keep reading and get access to the full archive.

Continue reading

The European Sting – Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology – europeansting.com