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.
Megan Van Etten
Megan Van Etten is Vice President of Public Affairs. She is responsible for leading the association’s public affairs efforts on international issues, including trade, intellectual property and access to medicines. Prior to joining PhRMA, Megan was director of media and external communications at the U.S. Chamber of Commerce and communications director at the Beer Institute. She has also worked as a communications consultant for global public relations firms. When not at the office, Megan enjoys exploring new Washington, D.C. restaurants and traveling with her husband and friends.
Megan Van Etten
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New data: America is an API powerhouse
New data: America is an API powerhouse