Proposed US Supply Chain Bill Poses Risk for European Drug Manufacturers
A proposed U.S. bill aims to reduce reliance on foreign drug manufacturing, potentially threatening Europe's pharmaceutical sector by exposing it to tariffs and other trade barriers. The Pharmaceutical Investment Oversight and Accountability Act seeks to promote domestic production in the United States while discouraging dependence on imported drugs. According to GlobalData data, Europe is currently the largest manufacturer of FDA-approved innovator and biosimilar products, with Germany leading at 35% of regional output. This dominance could make European manufacturers vulnerable if the U.S. government moves forward with policies aimed at reshoring pharmaceutical production. The bill's co-sponsor, Senator Elizabeth Warren, argues that strengthening domestic supply chains is essential for national security. In addition to this legislative threat, Germany faces a separate investigation by the U.S. Trade Representative into its drug pricing practices under Section 301 of the Trade Act.
Topics: European drug manufacturers supply chain legislation US pharmaceutical manufacturing