With the aim to end dependence on other countries, US President Donald Trump's administration awarded a contract up to $812 million for a new US company to manufacture drugs and drug ingredients to fight COVID-19.
The U.S Department of Health and Human Services said on Tuesday that it had awarded a 4-year, $354 million contracts to privately-held Phlow Corp to make COVID-19 drugs, other essential drugs, and their ingredients. The contract can be extended for up to $812 million over 10 years.
"For far too long, we've relied on foreign manufacturing and supply chains for our most important medicines and active pharmaceutical ingredients while placing America's health, safety, and national security at grave risk," Peter Navarro, director of the White House Office of Trade and Manufacturing Policy, said in a statement.
The administration has been looking to build up the ability to produce drugs and their raw materials in the United States after the global pandemic exposed the industry's dependence on China and India for its supply chain.
