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# Stakeholders Urged to Transform Drug Supply Chain
- URL: https://www.fdaweb.com/stakeholders-urged-to-transform-drug-supply-chain/
- Published: 2021-07-20T12:00:00.000Z
- Updated: 2026-09-14T17:07:03.000Z
- Author: David McFarland
- Tags: Drugs, #legacy-id-D5149740

To attempt to stave off government drug price regulation, the Business Group on Health’s Pharmaceutical Supply Chain Leadership Forum (PSCLF) is calling on stakeholders to reform the drug supply chain based on principles and recommendations [released](https://www.businessgrouphealth.org/resources/psclf-reforms-required-for-transformation-executive-summary?ref=fdaweb.com) following a two-year PSCLF study. “In an environment of high and rising drug prices and their associated aggregate costs,” the group’s report says, “our work confirmed that, to a great extent, the contractual arrangement and business practices of stakeholders within the pharmaceutical supply chain contribute to unaffordable and unsustainable drug prices.”

PSCLF recommends specific actions to ensure: 

- that individuals have access to the right drug, in the right place, at the right time, and at an affordable price, as well as access to information on therapeutic alternatives, price, and true out-of-pocket costs;
- that financial incentives are realigned across the pharmaceutical supply chain to prioritize consideration of lowest cost options to the system when clinical outcomes are similar, reduce artificial price inflation, and eliminate conflicts of interest;
- benchmarks for drug prices are established by a transparent and independent third party, informed by a cost-effectiveness analysis and validated by real-world data evaluations; and
- that public policies increase competition within the pharmaceutical market, enable market-driven reform, eliminate waste, and mitigate overall cost.

“The collective impact of the current model,” PSCLF concludes, “has resulted in a system that neither puts the patient first, nor promotes an optimized value-based approach to the procurement of or payment for prescription drugs. Both public policy and market-based reforms are needed to course-correct if we are to rationalize the pharmaceutical supply chain. Market-based reforms will require collaboration and compromise among industry participants in the supply chain.”