Skip to NavigationSkip to content

Trump signs deal with generics company Phlow Corp to help shift drug manufacturing to the US

Published on 19/05/20 at 11:13am
Photo by WP Paarz/

The Trump administration will sign a $354 million deal with the generics company Phlow Corp to help produce medicines and ingredients to treat COVID-19 coronavirus.

This deal aims to bring US drug making capabilities back home as they rely on countries like China and India for much of their medicines and pharmaceutical ingredients.

The Biomedical Advanced Research and Development Authority (BARDA) awarded a four year contract to Phlow, where it will lead a team of private sector entities that include the Medicines for All Institute, Ampac Fine Chemicals, Civica Rx.

White House trade adviser Peter Navarro told The New York Times that the deal was a “historic turning point in America’s efforts to onshore its pharmaceutical production and supply chains.” Alex Azar, the Secretary of Health and Human Services, also commented on the deal and said that it’s a “significant step to rebuild our domestic ability to protect ourselves from health threats.”

There is speculation that the contract could be extended for a total of ten years, making it worth $812 million.

88% of the US active pharmaceutical ingredients (API) are manufactured abroad, with around 14% being manufactured in China, with Europe and India making up the bulk of the rest.

It has been reported that 150 drugs are at risk of a shortage in the US due to the coronavirus pandemic. These include branded generics and some branded drugs.

Conor Kavanagh

Mission Statement is a leading portal for the pharmaceutical industry, providing industry professionals with pharma news, pharma events, pharma service company listings and pharma jobs,
Site content is produced by our editorial team exclusively for and our industry newspaper Pharmafocus. Service company profiles and listings are taken from our pharmaceutical industry directory, Pharmafile, and presented in a unique Find and Compare format to ensure the most relevant matches