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FDA: Low prices contribute to generic drug shortages
Competition within the generic drug market that keeps prices low also contributes to injectable drug shortages, an FDA report says. Generics manufacturers may try to keep their costs low by cutting corners on quality control, and few generics makers have backup manufacturing facilities available in the event that quality issues halt production, FDA officials said. The Medicare Modernization Act of 2005 lowered reimbursement rates for generic sterile injectable drugs and might have had a role in shortages, they said.

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