The Department of Health and Human Services is spending about $256 million to secure drugs and active pharmaceutical ingredients that are needed during the Covid-19 outbreak, according to the General Services Administration website.
“Due to this outbreak, the supply chain for such items has been nearly depleted and oftentimes items must be sourced directly from the manufacturer or distributors with existing stock,” the HHS said in a document.
The Food and Drug Administration has only announced one drug in shortage due to the pandemic on Feb. 27, but didn’t specify the name. The FDA’s tracker of drug shortages includes about 100 drugs, but doesn’t specify if Covid-19 is the cause.
The HHS said it first plans to use pre-existing contracts with McKesson Corp. and LogMet to source pharmaceutical items, according to the GSA website. When those contracts run out of funds, the agency plans to spend up to $250 million to source drugs from Medline Industries Inc., AmerisourceBergen, Grainger, and Cardinal Health Inc.
Phlow Corp. will receive $6 million to supply drugs and active pharmaceutical ingredients, according to the GSA website.
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