US Signs $10 Billion Deal with Conditions for Domestic COVID-19 Treatment Production... Pharma Reshoring Initiative Underway

[Asia Economy Reporter Kim Hye-min] The United States has signed a contract worth $354 million (approximately 430 billion KRW) with a domestic pharmaceutical company on the condition that generic drugs and pharmaceutical raw materials for the treatment of COVID-19 are produced domestically, according to reports by the New York Times (NYT) and others on the 18th (local time).

According to the NYT and other foreign media, the U.S. government is scheduled to announce this contract on the 19th. The company involved is Phlow Corp, a generic drug manufacturer headquartered in Virginia, USA, which produces pharmaceuticals in India, China, and other countries.

Under this contract, the Biomedical Advanced Research and Development Authority (BARDA) under the U.S. Department of Health and Human Services will pay Phlow $354 million. The contract period is four years, with a possible extension of 10 years. If extended, the contract size will reach $812 million (approximately 995 billion KRW), according to the NYT. This is the largest contract ever signed by the U.S. Department of Health and Human Services.

Peter Navarro, Director of the Office of Trade and Manufacturing Policy at the White House, described it as "a historic turning point in the United States' efforts to bring pharmaceutical production and supply chains back home."

This content was produced with the assistance of AI translation services.