Buffalo, N.Y. (WBEN) As the U.S. is preparing to announce sweeping tariffs on pharmaceutical imports within the next two months, a local Pharmacist expects to see price hikes as well as possible supply shortages.
Anyone who regularly fills prescription medication may be surprised to learn
that of all the prescription drugs that are filled in U.S. pharmacies, only 4% are
manufactured in the United States.
90% of prescriptions that are filled in retail pharmacies such as Walgreens, Rite Aid, CVS, and independent pharmacies are for generic medications.
"Most of the medications that I will be dispensing today, run on average, $8 for 100 tablets," said Don Arthur, head pharmacist and owner of Brighton Eggert Pharmacy. "These are generics. Mostly medicines for seniors through Medicare. Usually they have a zero co-pay."
Arthur said over 30% of the active ingredients come from China and over 50% comes from India. About 10% come from Europe.
"The reason most manufacturing is done outside of the U.S., is primarily labor," added Arthur. "90% of the finished product comes from India. That includes medications in caplet and tablet form."
Wage, he said is the driving force.
"Over in India, where people are exceptionally trained and hard working, they have workers at manufacturing facilities that make as little as $30 to $100 U.S. dollars a month."
If a 300% tariff is placed on generic medication, Arthur explained that we're talking about a price hike from $8 to $24 dollars for 100 caplets. It's still a reasonable price, in his opinion. "I think the problem we'll see is upward pressure on co-pays and I think there will be supply issues because it will be difficult to get those drugs with a low co-pay."
Still, Arthur says pharmaceuticals that he's dispensing today have been in the warehouse for three to six months. If we see tariffs, he doubts it will affect drug supply for at least six months or more.