Prescription Drug Marketing Act

Excerpt

The supply chain of the pharmaceutical market is a complex entity that delivers medications from the manufacturer to hospitals, pharmacies, and other providers. This intricate process includes managing raw materials, labeling, packaging, and distributing to a multitude of destinations. This multifaceted pharmaceutical supply chain has areas of weakness prone to threats such as counterfeiting, false labeling, and ineffective medication.

Today, this complex supply chain has been increasingly convoluted due to foreign outsourcing of prescription drugs at lower prices. It is estimated, approximately 90% of the raw materials involved in prescription drug production are obtained abroad from China and other countries.

In addition, wholesale submarkets existing outside of regulated distribution channels (also known as “grey” or “diversion markets”) further exacerbate the influx of faulty and dangerous prescription medications to the public. To stifle the growing presence of such diversions markets, the United States (US) government implemented the Prescription Drug Marketing Act (PDMA) to outline legal parameters to ensure the safe and regulated distribution of prescription drugs.