From CNBC: 2025-05-05 17:49:00

President Donald Trump signed an executive order to boost U.S. prescription drug manufacturing by streamlining FDA approvals for new production sites amid potential tariffs on imported medicines. The order aims to reduce the time to build new capacity from 5-10 years, prioritize domestic production for national security, and increase FDA inspections.

The order directs the FDA to cut unnecessary requirements for U.S. manufacturing plants, raise inspection fees for foreign plants, and improve enforcement of active-ingredient source reporting by overseas producers. Trump aims to bring medical supply chains back home, with the EPA accelerating facility construction and federal agencies streamlining permits for domestic pharmaceutical manufacturing.

The order precedes Trump’s planned pharmaceutical tariffs, driving increased domestic manufacturing investments from companies like Eli Lilly, Johnson & Johnson, and AbbVie. Some pharmaceutical companies, like Pfizer, are pushing back against the tariff threat, citing deterred U.S. investments in research and development.

U.S. pharmaceutical manufacturing has declined as active ingredient production moved overseas, primarily to China. The U.S. imported $203 billion in pharmaceutical products in 2023, with 73% coming from Europe. Reshoring manufacturing can strengthen the drug supply chain but may raise production costs and drug prices, posing affordability concerns.



Read more at CNBC: Trump signs order to boost U.S. drug manufacturing