Journal Of World Science
Vol. 5 No. 6 (2026): Journal of World Science

From Lowest Unit Price to Lowest Total Supply Risk: A System Shift Framework for Resilience in the Global Generic Pharmaceutical Industry

Raymond R. Tjandrawinata (Universitas Katolik Indonesia Atma Jaya)



Article Info

Publish Date
26 Jun 2026

Abstract

Generic medicines are routinely framed as a success of price competition, yet recent evidence suggests that the same competitive architecture which lowers unit prices may also weaken supply resilience. Drug shortages, approved-but-unlaunched generics, geographically concentrated active pharmaceutical ingredient (API) production, sterile-injectable vulnerabilities, and the rising technical complexity of biosimilars indicate that the global generic pharmaceutical industry is undergoing a deeper system transition. This article developed a System Shift framework to analyse these structural challenges, linking seven analytical factors: system condition, domain lock, actors, chokepoints, position, strategy, and feedback. Using a public-source qualitative comparative case analysis of twenty companies across global, Indian, European, North American, Chinese, Korean, South African, and Southeast Asian contexts, the paper identifies recurring patterns of vulnerability and strategic adaptation. The analysis shows that generic firms are not a homogeneous low-margin group; they include global off-patent platforms, vertically integrated Indian exporters, sterile-injectable specialists, biosimilar platforms, regional branded-generic leaders, and national manufacturers. Across these archetypes, the dominant feedback signal remains lowest unit price, while quality maturity, supplier redundancy, and launch reliability remain weakly rewarded. The central conclusion is that generic pharmaceutical governance must shift from a cheapest-unit paradigm toward a lowest-total-supply-risk paradigm. Procurement, regulation, and corporate strategy must incorporate multi-award tendering, explicit supply-security criteria, accelerated regulatory variation pathways, resilient API sourcing, and transparent shortage-prevention feedback loops. The paper contributes a conceptual and policy framework for reinterpreting generic medicines as resilience infrastructure rather than merely low-cost therapeutic substitutes.

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Journal Info

Abbrev

jws

Publisher

Subject

Computer Science & IT Economics, Econometrics & Finance Engineering Health Professions Law, Crime, Criminology & Criminal Justice Social Sciences

Description

Journal Of World Science is a scientific journal in the form of research and can be accessed openly. This journal is published monthly by CV Riviera Publishing. Journal of World Science provides a means for ongoing discussion of relevant issues that fall within the focus and scope of the journal ...