America's large hospital chains will start manufacturing generic drugs in order to beat shkrelic price-gouging

A few are. Compounding pharmacies have become a bigger thing. And have started manufacturing generics to some extent. The compounders can make generics without neccisarily going through the same fda approval process normally needed. And I think they can even make/prepare drugs that are still in patent.

But there a big hurdles for starting to manufacturing generics. You have to have or build out a really precise, expensive manufacturing capability. Or find some one to contract to. New generics have to get approved by the fda as equivalent of just as effective and safe as the name brand. You have to have a slaes/marketing operation so docs, insurers and pharmacists know it’s an option.

And then there are the weirder situations. Some of these drugs that are crazy expensive are still under patent. Or like the epipen, The drug itself isn’t. And is in fact widely manufactured. But the delivery system is patented, And can be kept in patent by the usual improvement refilings. Generic epinephrine auto-injectors have been held up by problems of getting a new auto-injector that doesn’t infringe on the epipen patents through the fda. There’s been reliability issues.

There a just a lot of high hurtles. But hospitals have some of this built in already. They don’t need sales reps or marketing. They are the docs and pharmacists. They have direct connections to insurers. And existing relationships with drug manufacturers who can produce the drugs for them.

It’s a smaller move though. Unless they open to eventually sell them on the open market, it’s a relatively limited impact.

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