Drug Supply Chain Independence Bill

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Bipartisan legislation to make the U.S. pharmaceutical supply chain less dependent on China and other foreign countries has been reintroduced by Reps. Earl Carter (R-GA), Darren Soto (D-FL), Carol Miller (R-WV), and Matt Cartwright (D-PA). A statement (includes a link to the bill text) issued by Carter says FDA reports that 71% of active pharmaceutical ingredients (API) used in the U.S. drug supply are manufactured in more than 150 countries, with 13% from China alone. Further, the agency has said, the U.S. is also dependent on other countries for personal protective equipment (PPE), with about 95% of surgical masks and 70% of tighter-fitting respirators, such as N95 masks, being made overseas.

The Manufacturing API, Drugs, and Excipients (MADE) in America Act will work to mitigate drug shortages and medical supply chain crunches while incentivizing the domestic manufacturing of drugs, API, PPE, and diagnostics, Carter says.

The release says the bill would address vulnerabilities in the U.S. supply chain in a very distinct way. “For America’s national security,” it says, “the legislation incentivizes the domestic manufacturing of drugs, API, PPE, and diagnostics to make the U.S. supply chain less dependent on foreign adversaries like China. This is achieved through a new tax credit that would apply only to manufacturers operating in certain Opportunity Zones across the United States. This will work to bring manufacturing back to the United States through incentives aimed at leveling the playing field, rather than through punitive and ultimately counterproductive mandates.”

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