Phlow, a U.S.-based, public benefit drug manufacturing corporation, has received federal government funding of $354 million for advanced manufacturing of America’s most essential medicines at risk of shortage, including medicines for the COVID-19 pandemic response.
What we know: This project has been funded with federal funds from the Biomedical Advanced Research and Development Authority (BARDA), part of the office of Assistant Secretary for Preparedness and Response (ASPR) at the U.S. Department of Health and Human Services (DHHS).
Dollar amount of contract: The total contract value awarded to Phlow is up to $812 million which includes a four-year base award of $354 million with an additional $458 million included as potential options for long-term sustainability.
The United States was proven vulnerable during the Wuhan virus pandemic: The threat of pandemics like COVID-19 has exposed the United States’ heavy reliance on foreign pharmaceutical supply chains. Over 80 percent of APIs and chemical ingredients used in the U.S. to manufacture generics and over-the-counter drugs are produced abroad, the majority coming from China and India.
Peter Navarro, director of the White House Office of Trade and Manufacturing Policy said: “Years from now, historians will see this innovative project as a defining moment and inflection point for protecting American families‑—and our country—from current and future public health threats. 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. We are now moving swiftly in Trump time to forge an American solution, one that leads with American ingenuity, American workers, and American factories all dedicated to ending our drug shortages and expanding drug manufacturing infrastructure for a healthy and secure future.”
Eric Edwards, MD, PhD, co-founder, president and CEO, Phlow said: “In the midst of this pandemic, America needs a reliable source of high quality, domestically manufactured, affordable pharmaceuticals and their key ingredients. This advanced manufacturing capability will significantly fortify our nation’s pharmaceutical supply chain for critical medicines, including many required to treat patients hospitalized with COVID-19.”