Pharmaceutical Supply Chain Defense and Enhancement Act

Pharmaceutical Supply Chain Defense and Enhancement Act

This bill requires the Department of Health and Human Services (HHS) to enter into contracts with U.S. entities to manufacture certain critical drugs within the United States and otherwise addresses drug manufacturing.

HHS must periodically report to Congress a list of drugs that are critical to public health or national security. The Biomedical Advanced Research and Development Authority within HHS must enter into contracts for qualified U.S. entities to manufacture in the United States the drugs on this list (and ingredients for such drugs). The contracts must impose certain conditions, such as those requiring the manufacturing entity to (1) develop and maintain a redundancy risk management and continuity of business plan, and (2) commit to selling the drugs and ingredients manufactured under the contract at reasonable prices.

Beginning in FY2024, certain federal agencies (including the Department of Defense and the Bureau of Prisons) must, in procuring drugs on the HHS critical drugs list, give priority to high-quality drugs that are manufactured in the United States.

This bill also requires the Federal Trade Commission to submit annually to Congress a report on foreign investment in the U.S. pharmaceutical industry. The report must address, among other topics, the effect of the industry's reliance on foreign manufacturing.