October 27, 2020

The Trump administration gave a drug-making contract worth up to $812 million to a small Virginia firm founded less than 6 months ago

The Trump administration handed a contract worth up to $812 million to a small Virginia firm to boost the US’s production of coronavirus drugs and reduce reliance on foreign pharmaceutical supply chains.

The firm, Phlow, was founded in January and describes itself as a “public benefit pharmaceutical manufacturing company.” The contract is a huge sum for such a new firm.

The Department of Health and Human Services said on Tuesday that its Biomedical Advanced Research and Development Authority, which directs federal money to companies countering public-health threats, was giving the contract to Phlow.

The company aims to manufacture raw ingredients in the US for drugs needed to treat COVID-19 patients, CBS News reported.

According to The New York Times, US companies already produce the same drugs, but they rely on foreign raw ingredients that Phlow aims to source from within the US.

Leave a Reply

Your email address will not be published. Required fields are marked *