Supply Resilience & Access
Ensuring Canadians Can Reliably Access the Medicines They Need Timely access to medicines is the ultimate measure of a successful pharmaceutical supply chain. Yet across Canada, and globally, drug shortages are becoming more frequent, more complex, and more disruptive. At Vital, we view access not as a standalone issue, but as the outcome of a resilient, coordinated, and globally connected supply chain.
A Growing Global Challenge
Access to medicines is the ultimate measure of a successful Yet across Canada (and globally) are becoming more frequent, more complex, and more disruptive. At Vital, we view access not as a standalone issue, but as the outcome of a resilient, coordinated, and globally connected supply chain.
Drug shortages are not isolated events—they are the result of pressures across the entire
pharmaceutical ecosystem.
Globally and in Canada, shortages are increasing due to a combination of:
- Economic pressures and thin margins for essential medicines
- Lean, highly optimized supply chains with limited redundancy
- Regulatory complexity across jurisdictions
- Dependence on global manufacturing and raw material sourcing
Canada, as a smaller market within this global system, is particularly sensitive to these
pressures.
What Causes Drug Shortages?
Drug shortages are multifactorial, often triggered by disruptions at any point in the supply chain.
Common causes include:
- Manufacturing delays or quality issues
- Limited access to raw materials or active pharmaceutical ingredients
- Sudden spikes in demand (e.g., pandemics or seasonal surges)
- Discontinuation of products
- Transportation or logistical disruptions
Given the system is interconnected, even a single disruption can cascade across markets and
geographies.
Understanding the Impact
- Why Access Is at Risk
- Canada’s pharmaceutical supply chain is designed for efficiency—but that efficiency comes with trade-offs.
- Lean Supply Chains
- Highly optimized systems minimize waste and cost, but leave little buffer when disruptions occur.
- Global Dependencies
- Many medicines—and their ingredients—are sourced internationally, increasing exposure to geopolitical and production risks.
- Market Size Constraints
- As a smaller market, Canada may face challenges in securing supply when competing with larger jurisdictions.
- Pricing Pressures
- Low prices for certain essential medicines can reduce incentives for manufacturers to maintain or expand supply.
The Role of Supply Chain Stability
- Supply stability is the foundation of access. A stable pharmaceutical supply chain requires diversified sourcing to reduce reliance on single suppliers, early visibility into potential disruptions, strategic inventory and buffer stock to absorb shocks, and efficient distribution networks that can respond quickly to changing demand.
- Vital and our partners have identified these as critical priorities to strengthen Canada’s drug supply and reduce the frequency and severity of shortages.
A System-Wide Responsibility
- Ensuring access to medicines is a shared responsibility across the healthcare ecosystem.
- Key stakeholders include manufacturers (production and supply decisions), distributors (inventory management and allocation), governments and regulators (policy and oversight), and healthcare providers (clinical decision-making and substitution strategies).
- Collaboration across these groups is essential to prevent, mitigate, and respond to shortages
effectively.
The Role of Supply Chain Stability
- Supply stability is the foundation of access. A stable pharmaceutical supply chain requires diversified sourcing to reduce reliance on single suppliers, early visibility into potential disruptions, strategic inventory and buffer stock to absorb shocks, and efficient distribution networks that can respond quickly to changing demand.
- Vital and our partners have identified these as critical priorities to strengthen Canada’s drug supply and reduce the frequency and severity of shortages.
A System-Wide Responsibility
- Ensuring access to medicines is a shared responsibility across the healthcare ecosystem.
- Key stakeholders include manufacturers (production and supply decisions), distributors (inventory management and allocation), governments and regulators (policy and oversight), and healthcare providers (clinical decision-making and substitution strategies).
- Collaboration across these groups is essential to prevent, mitigate, and respond to shortages
effectively.
Vital’s Perspective
At Vital, we believe that improving access starts with strengthening the supply chain.
We support:
- Greater collaboration and information sharing across stakeholders
- Policies that enable flexibility and responsiveness in times of disruption
- Investments in supply chain resilience, including diversification and buffer capacity
- A balanced approach that recognizes both economic realities and patient needs
Access is not just about having medicines available, it is about ensuring they are available consistently, predictably, and equitably.
Within this broader context, our perspective focuses on practical solutions to strengthen access.
Looking Ahead
Drug shortages will remain a persistent challenge in a globalized pharmaceutical market but their impact can be reduced.
The path forward requires proactive, system-wide coordination; data-driven decision making; policies aligned with global supply realities; and continued focus on resilience over short-term efficiency.
Vital will continue to advocate for solutions that strengthen access, reduce shortage, and ensure long-term supply stability for all Canadians.
