Manufacturing complexity, heavy regulation, misaligned profit incentives, and surge in demand are key factors leading to drug shortages. Manufacturing errors or regulatory issues can cause entire plants to shut down, disrupting the supply chain. Price competition in the generic drug market reduces companies' motivation to produce them, leading to shortcuts and quality issues. Lack of profitability in generic drugs discourages investment in redundant supply chain systems. Additionally, a surge in demand for certain drugs contributes to supply-demand imbalances, exacerbating shortages and ultimately impacting patients.

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