‘Buy American’ Executive Order Receives Backlash
AAM And Wider Industry Call For Broader Changes To Framework
To build a “reliable long-term domestic production” of medicines and related supplies and to “minimize potential shortages,” US President Donald Trump has signed a ‘Buy American’ executive order. However, the move has left industry wondering if it is a sustainable solution.
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American Injectables plans to build up its US-based manufacturing after securing a commitment for $10m of ‘Series A’ financing from New Rhein Healthcare Investors, which it will use to scale up production and launch several generic parenteral products.
As the global generics industry had predicted, the unexpected growth seen in the first quarter of 2020 due to forward buying caused by COVID-19 levelled off in the second quarter. However, a few companies managed to report a “mixed” second quarter or a positive first half for 2020, even after experiencing challenges, such as operational interruptions, posed by the pandemic.
White House directive aimed at reducing dependence on foreign manufacturers for essential medicines and a seemingly more aggressive stance towards site inspections could signal a worrying emerging trend for India pharma. But it also needs to be viewed through the prism of the upcoming US elections and trade tensions with China amid the pandemic.