New data: America is an API powerhouse

Policymakers and the media have been taking a close look at the medical supply chain recently, including the manufacturing locations of active pharmaceutical ingredients (APIs) for medicines used by Americans. APIs are what make a medicine a medicine — they are the substance in the medicine that treats or cures a disease or affects a condition within the body. During the manufacturing process, chemical or biological materials are synthesized or grown and then purified into APIs. APIs are then combined with other materials to create a finished drug product.

While some may claim we are reliant on other countries to produce APIs, a new analysis by Avalere Health shows that, by dollar amount, the majority (53%) of the $85.6 billion in APIs used in U.S.-consumed medicines are produced here in the United States.  

Here’s what you need to know from the latest data:

• In 2021, 53% of the $85.6 billion in APIs used in U.S.-consumed medicines were produced in the United States  
• More than 85% were produced in either the United States (53%) or Europe (33%)
• China produced only 7% 

Biopharmaceutical companies have established resilient global supply chains, rooted in an extensive U.S. footprint. The number of pharmaceutical manufacturing facilities in the United States, including for APIs, has grown by more than 50% in the last five years. These investments are driving local economies, creating jobs, boosting American competitiveness and powering innovative medicines.  

Learn more at PhRMA.org/manufacturing.