Currently viewing the tag: "Supply Chain"

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Thieves that divert medicines from government stores prevent many thousands of patients from receiving care. The article below suggests that thieves are also calculating in that they only steal medicines nearing their expiration date. Such thoughtful thefts are great stock controllers but why would they loot government stores of near-expired medicines? If the purpose of the act is to resell medicines then “fresh” medicines would fetch a better price than those nearing expiration? It just does not make sense, does it? The article also suggests that stolen medicines are transported by ship from East African ports to West Africa. From Dar Es Salaam to Lagos is 5035 nautical miles around the tip of southern Africa and a vessel travelling at 14 knots would take 15 days. That’s a 15 day reduction in the life of the medicine and many medicines are sure to be expired by the time they reach Lagos. If expired medicines are landing on the shores of Nigeria why are officials not blocking their entry? The answer is multifaceted and it suggests that the networks coordinating such activities are trans-African and that they are protected and facilitated by strategically positioned and influential individuals. The answer is also linked to the lack of donor organization oversight of medicines purchased for patients in developing countries which is partly a function of what is being measured. That which is measured is known and that which is known is monitored. We’re always happy to know that an additional million dollars of life-saving medicines was purchased and supplied to a certain country. We measure the success based on the “additional million dollars” spent, issue press releases, and stop. Seldom do we hear something like this, an additional million dollars of medicines was bought AND consumed by the targeted patients. This second portion is far more difficult and is a significant gap in what we measure and how we monitor donor organization activities in developing countries. Plug this gap with systems to improve accountability and ensure target groups are reached and we’ll be well on our way to reducing the effectiveness of medicine thefts and their strategically positioned and influential facilitators.

Africa’s Stolen-Drug Problem

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As the Brazilian pharmaceutical market grows so does the need to ensure pharmaceutical supply chain integrity. The news below covers efforts by ANVISA to implement a system to monitor the distribution of pharmaceuticals from the manufacturer to the patient. Its not without logistical challenges but undoubtedly a great move to implement better systems of accountability.
Best regards, Joao

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With 191 million inhabitants, Brazil is the biggest pharmaceutical market in South America, valued at around $17bn in 2008, and is the tenth largest drug market in the world. The market has been experiencing buoyant growth despite difficulties affecting the economy as a whole, but this has been accompanied by an increase in medicines counterfeiting. Last year, the national regulatory agency – ANVISA – implemented a series of healthcare reforms to shore up patient safety as well as to encourage domestic production of pharmaceuticals. The Brazilian legislation (Act No. 11.903) was first put forward in January 2009 and set out an aggressive three-year timetable towards a full serialisation and track-and-trace system for prescription medicines, both human and veterinary, via the “capture, storage and electronic transmission” of data.

Source: SecuringPharma

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This article in Health Policy is a perspective on pharmaceutical aspects related to the health care reform currently underway in China. As the central government progressively move to adopt market mechanisms to improve the efficiency of the pharmaceutical supply chain, it will be interesting to observe whether the experience from other nations will be used to inform Chinese pharmaceutical policy. The article covers opinions concerning medicine pricing, health insurance, the use of pharmacoeconomics and much more.

Best regards, Joao

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Source: Health Policy (In press)

Pharmaceutical supply chain in China: Current issues and implications for health system reform
Xuan Yua, b, Cheng Lia, Yuhua Shib and Min Yua

Objective
This article discusses the performance and distortions of pharmaceutical market in China and provides some reflections and policy implications for currently implemented reform.

Methods
This study is based on literature review and publicly available data by searching electronic databases and official web pages of the Chinese government on the internet.

Results
China’s economic transition and the incremental and piecemeal nature of health care reform have created a pharmaceutical market with a number of deficiencies, including ineffective supervision, mark-up price pattern, distortion of the price schedule, and lack of authoritative drug formulary.

Conclusions
We conclude that the root cause of the market and government failures is that higher-than-cost drugs preferred by all suppliers. New drug pricing mechanism is the key to the current pharmaceutical reform and should be implemented in coordination with other health system reforms.

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