The cost of shipping pharmaceuticals to the United States has risen sharply as a result of the global coronavirus pandemic, according to a new survey of generic drug manufacturers conducted by the Association for Accessible Medicines (AAM). The survey of AAM’s generic and biosimilar drug manufacturers revealed that travel and transport costs have skyrocketed 224% on average, with at least one manufacturer reporting as much as a 413% increase in shipping expenses compared to the same costs before the crisis. Generic drugs account for 90% of all prescriptions dispensed in the United States.
As a result of the global slowdown and restrictions placed on international air travel resulting from the coronavirus pandemic, there has been a dramatic reduction in airline flights that carry pharmaceuticals and available cargo capacity. Government mandated work from home orders, along with unpredictable trade and export restrictions, have further exacerbated the difficulties supplying medicines during a time of significantly increased demand for treatments.
“The global pharmaceutical ecosystem is built on a highly complex supply chain,” said Jeff Francer, interim CEO of the Association for Accessible Medicines, the trade association representing the world’s generic drug manufacturers. “Despite serious challenges and increased costs in transporting needed medicines, manufacturers of generic and biosimilar medicines continued to deliver for America’s patients. However, this ongoing crisis illustrates the importance of developing new strategies and policies that enhance the pharmaceutical supply chain in the U.S. and increase our nation’s self-sufficiency.”