while it’s clear that excessive or unanticipated demand for specific drugs can result in drug shortage, but there is another side to the equation — that of supply.
canadians are dependent on a global supply chain: up to 80 per cent of all drugs for the canadian market are manufactured overseas, either wholly or partially, mainly in india and china. when covid-19 disrupted operations in these countries, canada saw drug production problems. january’s lockdown in china resulted in the drug shortages we are seeing in canada now.
other international events over which canada has no control, such as fires, labour disputes, border closings, and freight restrictions can also limit the flow of drugs into the country.
drugs manufactured by a single company, or that have few alternatives, are particularly vulnerable to shortages due to such unforeseen events.
and since canada has very little capacity to manufacture pharmaceuticals completely within its borders, at least one step in the manufacturing process typically involves accessing global resources and markets. this has resulted in canada being dependent upon globalization to ensure access to prescription medications.
beyond demand and supply issues, regulatory factors play a role in how well our drug supply chain functions. routine inspections of manufacturing factories identify quality control concerns that can shut down drug production until problems are addressed. the economics of the pharmaceutical industry can lead companies to cease production of drugs that are no longer profitable, even if those drugs are necessary for patients’ health. patent protection limits which manufacturers can produce which drugs in which country. government regulations for product labelling, such as using the french language, affect product availability.