Almost 100 pharmaceutical companies must now keep at least four months’ supply of common drug brands in the country under a Federal Government plan to combat medicine shortages. 

However, the Minister for Health and Aged Care has approved less stringent requirements for around 10% of drugs on the list, including a few cases where companies will not have to stockpile certain drug brands at all for at least several months.

The government’s Medicine Supply Guarantee officially began on 1 July, placing stockpile requirements on around 100 drug companies and almost 3000 drug brands — for either four months or six months depending on their PBS price.

The vast majority are cheap generics — including various brands of amoxycillin, codeine and diazepam — with the government saying medicines sold for $4 or less per pack are the most susceptible to shortages.