HDA Shares Insights on Supply Chain Resilience and Drug Shortages at Duke-Margolis Conference
HDA President and CEO, Chip Davis, recently participated on a panel at the 2025 Duke Margolis Health Policy Conference. The panel, “Ensuring Access to Essential Medicines through Resilient Supply Chains,” included perspectives from Ron Piervincenzi of US Pharmacopeia and Sarah D’Orsie of Fresenius Kabi on how public policies affect the supply of essential medicines and areas of opportunity to prevent shortages.
Here are some key points Davis raised during the discussion.
1. “If you have seen one drug shortage, you have seen one drug shortage.”
Davis emphasized that no two shortages are the same. They stem from different causes — from manufacturing disruptions to sudden spikes in demand. For example:
- Supply-side shortages are driven by manufacturing issues, supply constraints and reimbursement and market access limitations. These may occur when a manufacturer leaves the market or if there is a pause in manufacturing due to quality inspections. One example is generics: current economic incentives often mean market access for generics is not guaranteed, so manufacturers are not incentivized to continue manufacturing them.
- Demand-driven shortages, on the other hand, result from a downstream surge in demand and can be harder to predict.
Davis noted that due to the unique nature of each shortage, addressing them requires nuanced policy solutions. Policies to address drug shortages should involve supply chain collaboration, strategic federal investments to diversify the pharmaceutical supply chain and efforts to stabilize the generic supply chain from end to end.
2. Shifting from “‘just in time to just in case.”
The current healthcare supply chain is designed for efficiency; manufacturers, distributors and pharmacies produce or carry just enough inventory to meet the anticipated needs of their ultimate customer, the patient.
Davis called for a strategic shift to a “just in case” model where buffer stock and greater flexibility are built in, creating a more resilient and stronger supply chain. This shift would require the right incentives across the supply chain to ensure that stock is available in the event of a sudden increase in demand or a supply limit.
3. “Distributors may not always be the first to see a shortage ... but we’re often the first one that gets the phone call.”
Davis highlighted the critical role distributors play in responding to shortages. HDA members are often the first call a pharmacist or healthcare provider makes to find an alternative therapy for a patient, given our unique partnerships with both manufacturers and healthcare providers. Distributors work to help lessen the impact by leveraging their operational capabilities, expertise in inventory management and broader network.
4. “Any drug shortage for any patient is unacceptable.”
Davis stressed that, ultimately, drug shortages are not just a supply chain issue — above all, they affect patients. As an industry focused on ensuring that medicines reach pharmacies and hospitals across the country safely and reliably, distributors understand the profound impact that patients, their families and their providers face when dealing with shortages.
As Davis underscored, entities along the supply chain must commit to working together to address supply challenges and identify solutions to ensure patients get the medicines they need.
HDA and its members are committed to collaborating with supply chain partners and policymakers to develop effective solutions to this complex challenge and foster a stronger, more resilient supply chain for America.
Watch the full event here.
To learn more about the critical role healthcare distributors play in the supply chain, visit https://www.hda.org/health-delivered/.