Trump administration awards U.S. drug manufacturer $800 million contract

The Department of Health and Human Services announced Tuesday that it is awarding an initial four year, $354 million contract to Phlow Corp to produce drugs that will help fight coronavirus, in addition to other essential medicines. 

If the first four years of the partnership are a success, there is an option to extend the contract for up to 10 years and $800 million. 

This contract is seen as a pivot away from the United States' reliance on Chinese, and to a lesser degree, Indian drug supply chains.

"For far too long, we've relied on foreign manufacturing and supply chains for our most important medicines and active pharmaceutical ingredients while placing America's health, safety, and national security at grace risk," said Peter Navarro, a White House trade adviser to President Trump

Phlow said that this contract will allow the company to contribute to the national stockpile of active pharmaceutical ingredients.