Trump Takes ‘Historic’ Action To Move Pharmaceutical Manufacturing Out Of China, Back To U.S.

Seeking to secure the nation's supply of critical medications, the Trump administration has signed a $354 million contract that would create the nation's first strategic stockpile of key ingredients needed to make medicines.

The agreement was signed Monday with Phlow Corp., a generic drug maker based in Virginia. According to a news release to be made public Tuesday, the project will use federal funds from the Biomedical Advanced Research and Development Authority under the Department of Health and Human Services.

The goal is twofold: to enable the U.S. to manufacture essential drugs at risk of shortage and to create a reserve of active pharmaceutical ingredients to reduce the dependence on foreign suppliers.

Phlow's CEO, Dr. Eric Edwards, told NBC News that the company had been in discussions with the administration back in November but that the project was fast-tracked once COVID-19 hit.

"We said: 'We have a short-term and long-term solution. We know that there are certain key essential generic medicines that are going to go into shortage if this thing starts spreading,'" Edwards said. "There were drugs that were already on the FDA drug shortage list long before COVID-19 and we already saw what was happening with PPE, and we knew this was going to be as bad or even worse."

"PPE" is short for personal protective equipment used by medical personnel.

Edwards said the company is set to provide more than a dozen medications and ingredients used for sedation, pain management, blood pressure control and antibiotics. It has already produced over 1.6 million doses of five essential generic drugs used to treat COVID-19 that were added to the U.S. Strategic National Stockpile in March.

Phlow will be manufacturing the drugs in partnership with the nonprofit pharmaceutical company Civica Rx, Virginia Commonwealth University and AMPAC Fine Chemicals, a manufacturer of active pharmaceutical ingredients. The total value of the Phlow contract is up to $812 million, which includes the possibility of an additional $458 million to keep the project going long term. It was first reported by The New York Times.

"This is an historic turning point in the battle of President Trump to bring our pharmaceutical manufacturing and supply chain home to American soil," White House trade adviser Peter Navarro told NBC News.

The move would help address a longstanding concern in the health care sector, experts said, as the vast majority of raw drug ingredients are produced overseas, mainly in India and China because of cheap manufacturing costs and less stringent regulations. Experts have long feared a significant supply disruption caused by the country's dependence on foreign manufacturing.

The coronavirus pandemic has forced hospitals to scramble to source critical medications for COVID-19 patients. In some cases, fear of shortages has created a competitive landscape among health care providers seeking the same medications.

Arash Dabestani, senior director of pharmacy at NYU Langone Health in New York, said getting the necessary drugs often involves a team of six people making calls to wholesalers, distributors and direct manufacturers as early as 9 a.m. And even then, they may get only half the supply they really need.

"It's like an auction," Dabestani said. "Whoever screams the loudest gets it."

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Comments (3)

May I ask for your point of view on this? Have you an opinion, or are you simply bringing this news to our attention? I would like to know where you stand.
Have you an opinion, or are you simply bringing this news to our attention? I would like to know where you stand.

Too many of our medications come from China. (over 90%) With something as important as our health, most of the drugs should be domestically made. The last 3 administrations sold out our pharmacies in favor of cheaper prices from China. Time to bring back manufacturing in this country.
Ten years ago you said Ralph ten years eh....................jenny
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Willy3411

Willy3411

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Retired old guy. Loves sports, music, and karaoke. Not shy about singing.Love to travel. Love to go to beaches and warm weather outdoor events. U.S. Air Force Veteran. I am here for the blogs. I am an amputee. My lower leg is gone.

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