Biden wants an API supply chain overhaul. Will this turn into an “onshore” drug manufacturing effort? – Terminal news
When former President Donald J. Trump was removed from office on November 2, his enthusiastic efforts to manufacture “onshore” drugs were mostly left in abeyance. Joe Biden has been largely silent on whether he will continue this effort, but a new executive order could provide a clue – at least in a few months.
In an order signed Wednesday, Biden demanded a 100-day government review of major supply chains, including for active pharmaceutical ingredients (APIs) used in US drugs.
Biden’s effort is not just a large-scale effort launched under the Trump administration to pump billions into manufacturers of drugs made in the United States, but a key note in the fact sheet prepared by the president might indicate its purpose. In it, his team pointed out that 70% of US API producers have relocated in recent decades, potentially threatening the supply of a stable supply chain during future pandemics.
Since his inauguration, it is unclear whether Biden would adopt the explicit nativist tone of Trump’s “Buy America” initiative, which peaked in August. Executive Decree aimed at stimulating new investments in the production of drugs on land.
This game plan has sometimes led to some questionable investments, including a Loan of $ 765 million via the development funding branch of the administration at camera maker Kodak. After the loan was announced, insider trading charges and an SEC investigation finally sent this initiative free fall in August.
Meanwhile, the government invested more directly in the new company Phlow Corporation in May, a hitherto unknown company that was asked to partner with generic maker Civica Rx, among others, to build a plant in Virginia. for essential hospital drugs. In January, Civica announcement it would distribute $ 124.5 million to build its first in-house manufacturing plant in Petersburg, Va. – near Phlow and other government contract partners, Medicines for All Institute and AMPAC Fine Chemicals.
Outside of the government’s purview, other high-profile players have stepped up in recent months to put their own big down payments on drugs made in the United States.
In January, the billionaire investor Marc Cuban gave its name to a new company dubbed Mark Cuban Cost Plus Drugs, a generics startup using wholesale flat-rate margins to reduce the cost of expensive generics. The goal is to eventually launch more than 100 drugs on the market by the end of this year, but the company will start with the antiparasitic albendazole, which it says it offers at an average price per pill of $ 20 compared to at the current average of $ 225. MSRP. For insured patients, that price could drop “as low as a dollar,” the company said on its website.