The US Must Reduce Its Pharmaceutical Dependency on China, Now and Now It Is!

The US Must Reduce Its Pharmaceutical Dependency on China, Now and Now It Is!

Just In: President Trump is signing a Buy American executive order to bring more manufacturing for medical supplies back to the US, shredding China 2025.

The essence of the order is to bring all of that home so that the US does not have to worry about foreign dependency.

Making and Keeping America Great!

President Trump should prepare executive order to relocate medical supply chains from overseas advancing he campaign to lessen foreign dependence and ink it immediately.

The security of the US drug supply rests on 3 Key factors: freedom from dependence on foreign sources of API (active pharmaceutical ingredients), the resilience of US market, and the reliability of the facilities that make products for the US market.

China now dominates that market globally. And though India is a large manufacturer of the finished product along with China, Indian companies get 80% of their ingredients from China.

US Senator Marsha Blackburn (R-TN), addressed the reliance that the US currently has on China and India when it comes to Key pharmaceutical ingredients, as medical professionals are hoping to stave off the coronavirus pandemic.

Senator Blackburn said Sunday morning on TV that even before the current outbreak, she was pushing legislation to reduce that dependency and increase production in the US.

Many of the pharmaceuticals that are necessary for treating some of these viruses,” Senator Blackburn said, “they are made only in China and we are dependent on them for these, they are called APIs.”

Senator Blackburn went on to say that her bill “would incentive bringing that production back to US shores” and “would change some of the legislation around the FDA … that deals with these emerging threats and new technologies and add advanced pharmaceutical manufacturing in this.”

She specified that the bill has a $100-M grant pool for “centers of excellence” to work with pharmaceutical companies, and that she is now also looking into tax incentives.

Senator Blackburn also addressed legislation currently being worked on by lawmakers to address the economic impact of the coronavirus.

I want to make certain that what we do is targeted, that it is temporary, that’s not picking winners and losers,” she said.

Senator Blackburn also warned against repeating what she believes were mistakes during the response to the Y 2008 economic crisis which “really slowed down the recovery.”

We need to be certain that what we are doing does not get in our own way,” she said.

The US is the single largest pharmaceutical market in the world, but it lags behind other countries in API production for drugs marketed in the US.

As of August 2019, 28% of the manufacturing facilities making APIs for US markets were based in the US. The remaining 72% of the API manufacturers supplying the US market were outside the US, which includes 13% in China

The analysis applies to all FDA-regulated products, which includes prescription drugs, both branded and generic, over-the-counter (OTC) drugs, and compounded medications.

The FDA’s data show that the number of registered facilities making APIs in China more than 2X’d between Ys 2010 and 2019.

Speaking from a US public policy perspective advanced manufacturing technology was an important element in achieving US competitiveness in API supply for US-marketed drugs.

Using traditional pharmaceutical manufacturing technology, a US-based company could not offset the labor and other cost advantages that China and India enjoy simply by achieving higher productivity.

But, the FDA believes that advanced manufacturing technologies would enable US-based pharmaceutical manufacturing to regain its competitiveness with China and other foreign countries, and potentially ensure a stable supply of drugs critical to the health of US patients by manufacturing at home.

China has a chokehold on the US for critical APIs.

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