Federal Government Moves to Lessen U.S. Dependence on Overseas Drugs

May 20, 2020

CPA member Phlow receives federal contract to produce COVID medicines

Washington. The Coalition for a Prosperous America (CPA) today congratulated the Trump administration for awarding a $354 million contract for generic drug production to Phlow Corp., a Virginia-based drug manufacturer. Phlow, a CPA member, will begin producing prescription drugs and their raw ingredients, including some medicines used to treat patients infected with COVID-19.

“We’re very pleased to see President Trump and his team take such an important step toward reshoring production of essential medicines,” said CPA Chair Dan DiMicco. “The impact of the coronavirus has revealed glaring shortcomings in America’s supply chains, particularly a dependence on China for everyday medicines and drug ingredients. There’s no time to waste in ramping up domestic drug production when millions of Americans’ lives are at risk.”

CPA has continually warned of U.S. over-reliance on imports for key commodities like prescription medications from China. At present, much of America’s drug sourcing comes from overseas, including the generic medications that comprise 90 percent of America’s daily needs. Thousands of these drugs are made with compounds and ingredients made in China. And 90 percent of the chemicals for generic drugs used to treat coronavirus infections are also sourced from China, including many common antibiotics.

CPA has been particularly troubled by drug shortages resulting from COVID-19 supply chain disruption. The administration’s decision to award Phlow a grant from the Department of Health and Human Services will allow the company to make medicines and ingredients at plants in Virginia operated by its partners, and by working with Civica Rx, a non-profit venture started by hospitals to distribute drugs through contracts with pharmaceutical manufacturers. 

“This is a game-changing move to launch the reshoring of America’s pharmaceutical supply chain,” said Michael Stumo, CEO of the CPA. “We’re very pleased to see Phlow undertake this important work. It couldn’t come at a more urgent time, with the current pandemic halting some crucial drug imports.”

Stumo added, “It’s strategically unwise to rely on a hostile competitor like China, especially in light of unsafe drug imports like tainted Heparin. Washington should encourage greater domestic drug production through Buy America policies that require the Department of Defense, Veterans administration, FEMA, and HHS to buy American-made drugs whenever possible.”

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  • Bruce Bishop
    China has a 25 year plan to dominate the world, both economically and militarily. Our government’s planning horizon extends only until the next election. There is no profit in generic drugs, and drug companies will not be able to produce them once the subsidies expire. China’s cost advantage is so great that U.S. firms cannot compete with them — even with massive tariffs. When Trump is gone, it will be back to “business as usual,” with China continuing to become the lone super power. Our greedy, incompetent government is no match for a focused, dictatorial regime with endless “slave labor” and NO regulations on manufacturing. bbishop725@aol.com