Purchasing Commitments Must Underpin US Expansion
AAM Industry Association Sets Out Blueprint For US Supply Chain
In an attempt to strengthen the US generic drug supply chain and reduce dependence on certain countries for supply, the AAM has proposed a policy framework “blueprint” that requires government purchasing commitments in exchange for industry manufacturing expansion.
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US start-up Phlow has been awarded federal government funding of $354m as part of a contract to manufacture essential medicines in the US amid the COVID-19 pandemic, in partnership with AMPAC Fine Chemicals and Civica Rx.
As costs and delays mount, the brand and generic groups seek government solutions. AAM continues to press for federal contracts, and PhRMA wants the Department of Transportation to use its enforcement discretion under CARES Act to mandate international flights. AAM survey finds pandemic has caused 224% spike in the cost of transporting drugs.
The AAM has warned the Trump administration that ‘Buy American’ requirements on medicines could limit patient access to affordable medicines and increase the risk of drug shortages during the coronavirus pandemic.