Coronavirus Medicines: Virginia Company Wins Federal Contract For Essential Drugs

A Virginia company announced Tuesday it had reached agreement with the Trump administration to produce key ingredients used in essential medications to reduce U.S. dependence on foreign sources. The action was taken in light of supply chain issues that surfaced as a result of the coronavirus pandemic.

The Biomedical Advanced Research and Development Authority awarded the contract to Phlow Corp. worth as much as $812 million to build the U.S. stockpile. It includes a base award from the Department of Health and Human Services totaling $354 million, with an additional $458 million in options for maintaining production in the long-term.

“Collaborating with Phlow and its partners is an important step in expanding our manufacturing of strategic APIs [active pharmaceutical ingredients] and critical medicines at-risk of shortage,” Dr. Gary Disbrow, acting director of BARDA, said in a press release.

Phlow, in partnership with Civica Rx, Virginia Commonwealth University’s Medicines for All Institute and AMPAC Fine Chemicals, is expected to deliver more than 1.6 million doses of five generic drugs used to treat COVID-19 patients. The medicines include antibiotics, and drugs used for sedation for patients on ventilators, and pain management.

White House trade adviser Peter Navarro said the U.S. has relied on foreign supplies for essential medicines for too long.

“Years from now, historians will see this innovative project as a defining moment and inflection point for protecting American families -- and our country -- from current and future public health threats,” Navarro said.

“We believe this work can revolutionize America's generic drug manufacturing model by enabling Phlow to produce affordable ingredients used to manufacture essential medicines in the U.S.,” Phlow co-founder Frank Gupton said.

Trump announced plans for building up the national stockpile last week. In addition to drugs, the stockpile will include essential equipment like ventilators and personal protective equipment.

The effort to treat patients with COVID-19 was hobbled at the start of the pandemic by a lack of ventilators, personal protective equipment and drugs, contributing to the death toll and infections among doctors, nurses and other hospital personnel.

By late afternoon Tuesday, COVID-19 had killed more than 91,000 Americans.