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Gray Market Companies Exploit Drug Shortages, US House Committee Reports
Gray market companies operating outside of the legitimate drug distribution chain buy and sell drugs in shortage at exorbitant prices, indicates a report of the House Committee on Oversight and Government Reform. In an investigation of the issue, staff examined over 300 pedigree documents for drugs in shortage and found that some drugs in shortage are leaked into gray market distribution networks. In two-thirds of the cases examined, they found that drugs were resold by entities holding pharmacy licenses to gray market wholesalers. In some cases it was found that these entities were not dispensing drugs to patients, but selling their entire inventory into the gray market. In other cases, gray market wholesalers persuaded pharmacies to act as purchasing agents to acquire drugs in shortage for sale to the wholesaler. The report stresses that once in the gray market, drugs are typically resold several times before being purchased by a hospital. Health care providers have noted the patient safety concerns when drugs pass through the gray market, as highlighted in the report. Providers noted that they cannot be certain of the authenticity of gray market drugs, nor of the integrity since, for example, the drugs may have been improperly stored.
