Warren, Rubio Renew Push to Investigate the Effects of Foreign Investment on U.S. Pharmaceutical Supply Chains

October 02, 2024

Warren, Rubio Renew Push to Investigate the Effects of Foreign Investment on U.S. Pharmaceutical Supply Chains

U.S. risks extreme vulnerability to supply chain disruptions for critical drugs.

Bill Text (PDF)

Washington, D.C. - Senators Elizabeth Warren (D-Mass.) and Marco Rubio (R-Fla.) reintroduced the United States Pharmaceutical Supply Chain Review Act, legislation to require the Federal Trade Commission, in consultation with the Department of Commerce, to produce a report on the impacts of foreign investment in the United States' pharmaceutical industry. The senators first introduced this bipartisan legislation in June 2020, just months after Senator Warren introduced broader legislation addressing U.S. pharmaceutical supply chains' overreliance on China.

The United States relies heavily on foreign nations for its supply of drugs and pharmaceutical products. For example, up to 80% of active pharmaceutical ingredients, required components of generic drugs, are imported from abroad. This dependence makes the supply chain vulnerable to disruptions and other slow-downs, threatening care for millions of Americans.

"As we experienced firsthand during the pandemic, lives are at risk when the U.S. is over-reliant on foreign countries for pharmaceuticals -- and unfettered foreign investment in the U.S. pharmaceutical industry could put our national security at risk. The United States Pharmaceutical Supply Chain Review Act will provide crucial information to help us prevent supply chain crises and protect people's lives," said Senator Warren.

"The last few years have made it clear that we must pass meaningful legislation to reduce our dependence on China for pharmaceuticals. I'm proud to reintroduce this bipartisan bill, which will shed more light on the impact that foreign investment and offshoring have on our supply chain's vulnerabilities," said Senator Rubio (R-Fla.).

The FTC's report, as outlined in the legislation, would include information on:

• The U.S. pharmaceutical supply chain and the effect of concentration and reliance on foreign manufacturing;
• The effect of foreign investment on domestic capability to produce drugs and active and inactive ingredients of drugs;
• The effect of foreign investment in technology for sequencing and storing DNA; and
• The effect of relocating U.S.-based manufacturing facilities to foreign countries on the domestic capability to produce drugs and active and inactive ingredients of drugs.

Senator Warren has worked to end the United States' overreliance on foreign-made pharmaceuticals and to boost the nation's domestic manufacturing capacity:

• In September 2024, Senators Elizabeth Warren, Rick Scott (R-Fla.), Marco Rubio (R-Fla.), Chris Murphy (D-Conn.), Joni Ernst (R-Iowa), and Mike Rounds (R-S.D.) wrote to the Department of Defense (DoD) seeking an update on its pharmaceutical acquisition strategy following the decision in Acetris Health, LLC v. United States, which loosened requirements on federal agencies to preference American-made products in purchasing decisions.
• In April 2024, while chairing a hearing of the Senate Armed Services Subcommittee on Personnel, Senator Elizabeth Warren questioned officials from the Department of Defense and other experts on efforts to ensure service members are receiving safe, effective medicines.
• In March 2024, Senators Elizabeth Warren and Marco Rubio (R-Fla.) led a letter to Department of Defense (DoD) Secretary Lloyd Austin requesting an update on the Department's efforts to address risks to the military pharmaceutical supply chain.
• In December 2023, at a hearing of the Senate Finance Committee, Senator Elizabeth Warren highlighted the need for the public manufacturing of generic drugs to address critical drug shortages and ensure access and affordability of prescription drugs for consumers.
• In December 2023, Senator Elizabeth Warren and Representative Jan Schakowsky (D-Ill.) reintroduced the Affordable Drug Manufacturing Act, to address the skyrocketing price of prescription drugs and increase competition in the generic pharmaceutical market.
• In June 2022, during the NDAA negotiations, Senator Elizabeth Warren prioritized her bills to help prevent civilian harm, electrify the military's vehicle fleet, prevent conflicts of interests and corruption at the Department of Defense, prohibit price gouging by defense contractors, expand medical care for military families, lower the costs of prescription drugs, and reduce America's reliance on foreign countries for critical drugs.
• In December 2021, Senators Elizabeth Warren and Marco Rubio (R-Fla.) sent a letter to Gregory Kausner, who was performing the duties of Under Secretary of Defense for Acquisition and Sustainment at the Department of Defense (DoD), urging him to address DoD's overreliance on pharmaceuticals produced abroad.
• In November 2021, Senators Elizabeth Warren and Marco Rubio (R-Fla.) introduced the Strengthening Supply Chains for Servicemembers and Security Act to address the national security risk posed by the United States' reliance on foreign entities for pharmaceuticals.
• In April 2021, Senators Elizabeth Warren and Marco Rubio (R-Fla.) reintroduced the U.S. Pharmaceutical Supply Chain Review Act to direct the Federal Trade Commission and the Secretary of the Treasury to conduct a study on the United States' overreliance on foreign countries and the impact of foreign direct investment on the U.S. pharmaceutical industry.
• In April 2021, Senators Elizabeth Warren and Tina Smith (D-Minn.)reintroduced the Pharmaceutical Supply Chain Defense and Enhancement Act - comprehensive legislation that takes bold steps to reinvigorate the United States' manufacturing capacity and end the nation's reliance on foreign countries for critical drugs used by millions of Americans.
• In September 2020, Senators Elizabeth Warren and Tina Smith (D-Minn.) wrote to President Donald Trump raising questions about the failure of his recent Executive Order to address the nation's overreliance on foreign nations for key drug products, and asking that he support their legislation, which would address this serious problem.
• In March 2020, Senators Elizbaeth Warren and Marco Rubio (R-Fla.) introduced bipartisan legislation to combat America's supply chain risk and dependence on China for pharmaceuticals, to address the loopholes left by the Acetris decision.
• In June 2020, Senators Elizabeth Warren and Marco Rubio (R-Fla.) introduced the United States Pharmaceutical Supply Chain Review Act to direct the Federal Trade Commission (FTC) and the Secretary of the Treasury to conduct a study on the United States' overreliance on foreign countries and the impact of foreign direct investment on the U.S. pharmaceutical industry.
• In December 2019, Senator Elizabeth Warren, Tom Cotton (R-Ark.), Mitt Romney (R-Utah), and Tim Kaine (D-Va.), sent a letter to Secretary of Defense Mark Esper raising concerns about the national security risks posed by U.S. reliance on foreign-manufactured pharmaceutical products.

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