President Donald Trump's government has awarded US-based Phlow Corp an order of $ 354 million to manufacture drugs that are being tested or used to fight the new corona virus, as well as some drugs that are in short supply.
The four-year contract, with an additional $ 458 million in potential options, is a move by the government to reduce the country's dependence on foreign nations to support its drug supply chain.
Virginia-based Phlow Corp said it began manufacturing pharmaceutical ingredients and dosage forms for over a dozen essential medications to treat patients with COVID-19 disease in hospital.
Many of these drugs are in short supply and have previously been imported from other countries, the private company said in a statement. India and China make up the vast majority of the active pharmaceutical ingredients that are used in the United States to manufacture drugs.
"For far too long, we have relied on foreign production and supply chains for our key drugs and active pharmaceutical ingredients, while at the same time placing America's health, safety and national security at high risk," said Peter Navarro, director of the White House Office of Trade and Manufacturing Policy said in a statement.
The funding immediately enabled Phlow to deliver over 1.6 million doses of five essential generics to treat COVID-19 patients to the U.S. Strategic National Stockpile.
Phlow will work with private sector companies, including Civica Rx, Ampac Fine Chemicals, and the Medicines for All Institute to manufacture the drugs.
All Phlow pharmaceutical products are manufactured in the U.S., according to the company's website.
The private company said it is also building up the United States' long-term national supply to secure the key ingredients for the manufacture of key medicines on US soil.
(Except for the headline, this story was not edited by NDTV staff and published from a syndicated feed.)