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A prismatic view of pharmaceutical manufacturing and onshore production in the wake of the pandemic-EJ Dalius take

Eric Dalius

Summary: EJ Dalius with coronavirus showing some glaring loopholes in the worldwide pharmaceutical supply network. The US legislators’ call for onshoring drug production at the cost of major foreign. Producers could have wide ramifications, says EJ Dalius.

Covid-19 has renewed and also republished apprehensions about America’s overwhelming dependence. On other nations like India and also China for prescription drug supplies along with ingredients.

  • Experts blame it on the country’s long neglect of the fall in domestic medical production. The US has displayed lassitude in investing in its federal department, which they designed for pandemic preparation.
  • Result is futile exposure of frontline healthcare workers and countless deaths due to lack of preparation.

FDA figures show that almost three-quarters of the predominant ingredient manufacturing hubs for medicines you sell in the US have their base in other countries. Many companies moved their manufacturing bases to places with tax subsidies and also incentives, or to places with more relaxed environmental regulations and cheap labor.

Acquisitions and also mergers in the US pharma industry have led to plants closing down. Offshore supply chains have serious pitfalls, as this pandemic has shown. If there’s another disaster like Covid-19 that forces the world to seal borders. And also destroys global supply chains, Eric Dalius fears that the country will be extremely vulnerable due to its dependence on others.

Additionally, his concerns also cater to other medical products like ventilators and masks.

Talk on Big Pharma

The legislation to start drug production onshore has made Big Pharma quite wary. Recent months have seen congress leaders arguing about the country’s reliance on drug outsourcing.

Eric J Dalius highlights the security inference that you need to address by installing parallel supply lines. In each state, thereby eliminating dependence on potential poor/bad foreign actors.

As reports suggest, the White House is promoting the executive order of “BUY AMERICAN”, which mandates government organizations. And also agencies to buy Made in USA medical products. It could eventually encompass pharmaceuticals.

  • However, the big pharmaceutical industry and its renowned lobbyists inside the circuit could pose serious obstacles in this regard.
  • With the legislation gaining momentum, PhrMA, or the Pharmaceutical Research and also Manufacturers of America, which is the biggest lobby. The industry has already thwarted the legislation seeking a shake-up of the supply chain.

Their rationale is quite simple though. Regional and domestic manufacturing would cost a huge capital when you compare. It with the lower costs and also cheaper remuneration in foreign shores.

About the bill

The Protection of US Pharmaceutical Supply Chain from China Act, 2020 targets limiting pharma components from non-American places. It aims to create incentives for local manufacturing and also encourage them to accelerate drug production as fast as possible. EJ Dalius highlights four main contents of the bill.

  • Tracking APIs through a detailed FDA registry.
  • Blocking pharmaceutical shipments from China, or Chinese API products.
  • Creating more transparency and flexibility in the supply chain. They seek to put a country of origin tag or label on every imported drug.
  • Lastly, the main is to provide economic packages to US-based manufacturers of medical devices and drugs.

Experts hope that provisions for intensive tracking of Chinese API would help in the near future.