Scott, Colleagues Reintroduce Bill to Encourage America’s Pharmaceutical Independence

WASHINGTON – U.S. Senators Tim Scott (R-S.C.) and Jacky Rosen (D-Nev.) reintroduced a proposal today to make the U.S. pharmaceutical supply chain less dependent on adversarial countries such as China. Congressmen Earl L. “Buddy” Carter (R-Ga.), Congressman Tom Rice (R-S.C.) and Congressman Darren Soto (D-Fla.) introduced companion legislation in the House.

According to the Food and Drug Administration, approximately 72 percent of active pharmaceutical ingredients (API) used in the U.S. drug supply are manufactured in more than 150 countries, with 13 percent coming from China alone. The Manufacturing API, Drugs, and Excipients (MADE) in America Act will work to mitigate drug shortages while incentivizing the domestic manufacturing of drugs, API, personal protective equipment (PPE), and diagnostics. This will be achieved through a new tax credit for manufacturers that operate in certain American Opportunity Zones.

“As we rebound from the pandemic, it is crucial that we act on the lessons learned through a year of supply chain shortages that left Americans vulnerable,” said Senator Scott. “We cannot continue to rely on adversarial countries like China for lifesaving drugs and crucial medical supplies. This legislation illustrates the transformative power of Opportunity Zones, which have not only spurred billions of dollars of investment into our nation’s poorest communities but will also be a catalyst for the resurgence of American manufacturing.”

“The COVID-19 pandemic has shown just how critical it is to bolster our domestic supply chain and strengthen our health care system,” said Senator Rosen. “The MADE in America Act will work to further grow our domestic drug and medical device manufacturing, and address ongoing drug shortages by improving FDA coordination and identifying specific barriers. I will continue working to grow our U.S. medical supply chain, invest in good paying jobs, and protect Nevada communities and access to critical medical supplies. ”

“I want America to be competitive on the world stage in as many ways as possible. The U.S. currently obtains 72% of Active Pharmaceutical Ingredients (API) from other countries, including 13% from China,” said Rice. “I’m proud to introduce the bipartisan MADE in America Act to incentivize drug manufacturing right here in the U.S. instead of shipping abroad our manufacturing needs and the jobs that come with them. This tax credit will address vulnerabilities in the U.S. supply chain while making our public health and national security stronger and more resilient.”

“The COVID-19 pandemic made it very clear that America cannot continue to rely on foreign entities like China for lifesaving medications,” said Carter. “This legislation is designed to significantly reduce the advantage that foreign countries provide and encourage companies to maintain, expand or relocate their production activities back to the United States and its territories through a tax credit that will serve the most disadvantaged communities in our nation. We simply can no longer be dependent on our enemies for anything, especially medications. America must secure pharmaceutical independence.”

“The COVID-19 pandemic made it clear that our nation must lead and prioritize domestic manufacturing of drugs, API, PPE, and diagnostics,” said Soto. “The MADE in America Act will uplift manufacturers and provide the resources to make the process beneficial for them as well. It is encouraging to see members from both sides of the aisle come together with a common goal to make America stronger.”

The MADE in America Act would address vulnerabilities in the U.S. supply chain in two distinct ways.

First, for America’s national security, the legislation incentivizes the domestic manufacturing of drugs, API, PPE, and diagnostics in order to make the U.S. supply chain less dependent on foreign countries like China. This is achieved through a new tax credit that would only apply to manufacturers operating in certain Opportunity Zones across the United States. This will work to bring manufacturing back to the United States through incentives aimed at leveling the playing field, rather than through punitive and ultimately counter-productive mandates.

Additionally, the legislation includes measures aimed at mitigating drug shortages including improving FDA reporting of facility inspections, working more closely with overseas regulators and streamlining FDA standardization processes for overseeing pharmaceutical manufacturing and the supply chain.