Trump passes executive order on procuring essential drugs from US firms1 min read . Updated: 07 Aug 2020, 01:16 PM IST
- The US commissioner of food and drugs has been directed to create a list of medicines, medical countermeasures, and critical inputs that are essential for public health in America
NEW DELHI: In potential trouble for Indian pharmaceutical companies, US President Donal Trump on Thursday passed an executive order to ensure that the world’s largest market procures 'essential medicines' from domestic production and reduces dependence on imports.
The executive order, part of Trump’s ‘buy American’ plan, comes on the back of the covid-19 pandemic that originated in China, leading to a severe disruption in supply chains of pharmaceuticals, among other things. Trump had highlighted this in his speech at Whirlpool Corporation’s manufacturing plant in Ohio, US, on Thursday.
"As we’ve seen in this pandemic, the United States must produce essential equipment, supplies, and pharmaceuticals for ourselves. We cannot rely on China and other nations across the globe that could one day deny us products in a time of need," Trump said.
As per the order, the US commissioner of food and drugs has been directed to create a list of medicines, medical countermeasures, and critical inputs that are essential for public health in America, based on which every US agency involved in the procurement of medicines "will consider using its authority to limit competition in government procurement of these essential items to American manufacturers."
“To support the production of advanced pharmaceutical ingredients and essential medicines in America, the order also directs agencies to prioritize permitting and approvals for domestic manufacturers," the White House said in a statement.
The US government said it has come up with the plan to protect American supplies during a public health crisis with a strong domestic supply chains for essential medicines, medical countermeasures, and critical inputs.
The move could potentially be disruptive for Indian drugmakers like Sun Pharmaceutical Industries, Lupin and Cipla, for whom the US is either the largest or second-largest market.