U.S. Sens. Elizabeth Warren (D-MA) and Marco Rubio (R-FL) reintroduced last week the U.S. Pharmaceutical Supply Chain Review Act to demand a study of the nation’s reliance on foreign nations for the pharmaceutical supply chain.
The bill would require a study produced by the Federal Trade Commission (FTC) and the Secretary of the Treasury, as directed by the Committee on Foreign Investment in the United States (CFIUS). The pharmaceutical industry relies heavily on foreign ingredients to maintain its supply of drugs and other products, sourcing nearly 80 percent of its active ingredients from abroad. As with any chain, this leaves a link that could be potentially disrupted.
“To defeat the current COVID-19 crisis and better equip the United States against future pandemics, we must take control of our supply chain and rely less on foreign countries for our critical drugs,” Warren said. “Our bill will require a study to show the effects of this overreliance and identify the tools we need to confront it head-on.”
The report would be required within one year of the bill’s passage, and beyond an overreliance on supplies, it would also address the impact of foreign direct investment on the industry. The senators have maintained that the levels of foreign investment in place have spurred the overreliance and threaten to stymie domestic capacity. President Joe Biden has already highlighted the issue through his infrastructure plan announced last month, which among other things, directed funds to onshore active pharmaceutical ingredients.
“COVID-19 has made it painfully clear that we must pass meaningful legislation in order to help rebuild our nation’s medical manufacturing and pharmaceutical sector,” Rubio said. “I’m proud to reintroduce this bipartisan bill, which would ensure we have the necessary information to address our supply chain vulnerabilities and reduce our overreliance on China for pharmaceuticals.”
The legislation has been backed by groups including the Coalition for a Prosperous America and United Steelworkers International.