Pressure To Produce Cheaper Generics Linked to More Hazardous Drug Recalls

MedicalResearch.com Interview with:
“pills” by Dominique Godbout is licensed under CC BY 2.0George P. Ball PhD
Operations and Decision Technologies Department
Kelley School of Business, Indiana University
Bloomington, IN 47405,

MedicalResearch.com: What is the background for this study? What are the main findings?

Response: We sought to examine how the intense pressure on firms to produce generic drugs more cheaply might influence product quality.

We find that the greater proportion of generic drugs a firm manufactures, the more severe product recalls they experience, because of an apparent relaxation of manufacturing quality standards. Additionally, they experience fewer less severe recalls, which may also result from forces of competition.

When the opportunity exists to not announce a recall that has high discretion, competition may lead firms to forgo the recall to avoid negative ramifications associated with recalls.

MedicalResearch.com: What should clinicians and patients take away from your report?

Response: The pressure to produce drugs at ever-cheaper prices may come at a cost to consumers, via more hazardous drugs leading to more recalls.

MedicalResearch.com: What recommendations do you have for future research as a result of this study?

Response: Potentially examining if/how tighter quality control standards from the FDA could improve manufacturing-processes for generic manufacturers. 

MedicalResearch.com: Thank you for your contribution to the MedicalResearch.com community.

Citation:

Product competition, managerial discretion, and manufacturing recalls in the U.S. pharmaceutical industry

George P. Balla, , , Rachna Shahb, Kaitlin D. Wowak
Journal of Operations Management
Available online 30 May 2018

Note: Content is Not intended as medical advice. Please consult your health care provider regarding your specific medical condition and questions.

 

 

 

 

 

 

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