Whereas name-brand drugs can be so expensive that people can’t afford them, generics are often so cheap that companies stop making them or cut corners to turn a profit. Competition for market share at rock-bottom price points has led to chronic shortages, unpredictable price-spikes, allegations of illegal price-fixing, and substandard and even dangerous practices. Production of generics has shifted overseas, where it’s harder for the Food and Drug Administration to inspect factories.
NYT
Drug production moved to Asia for the same reasons that other American manufacturing did: labor was cheap, environmental regulations were weak and the continent was full of new potential customers. But drug companies had an additional incentive: Over there, F.D.A. inspectors didn’t drop in on factories unannounced.