Healthcare Analyst Seth Denson says that if the U.S. were to make an effective COVID19 vaccine it is entirely reliant upon China to give us the ingredients necessary to mass produce it.
• “In order to make a vaccine, active pharmaceutical ingredients (API) are necessary. Currently, 90% of all active pharmaceutical ingredients utilized by U.S. drug manufacturers are made in China, except Pfizer
• “Pfizer is able to manufacture their products with less than 2% of their API’s coming from China. But it’s not just vaccines; additionally, it’s estimated that 97% of all antibiotics come from China.
• “Meanwhile, with U.S. pharmaceutical companies quietly outsourcing the health and safety of our citizens, we are now faced with a dual problem.
• “There is nothing in the current coronavirus legislation which addresses the need for rapid, mass drug production.
• “Even if the United States were to negotiate – to have the major drug companies like Roche or Johnson & Johnson bring back the drug supply chain – what incentive is there for drug manufacturers to do so? With pharmaceutical spending projected to reach $500 billion in U.S. by 2020, drug companies will continue to generate massive profits by outsourcing API manufacturing to China.
• “Manufacturing is not just about creating jobs, even though for a politician this is often the most important. Manufacturing is also about having in place the processes necessary for national security when it is tested.
• “Today, China is number one in the world in terms of manufacturing output with $2.01 trillion generated by that sector in 2018. Meanwhile, the United States is in second place, lagging $200 billion behind with only $1.867 trillion. Twenty-five percent of this valuation is due to U.S. pharmaceutical industry.
• “As we continue to focus on combating coronavirus now, we should also prepare to fight the next health pandemic in the days to come by ensuring we bring API manufacturing back onshore in the U.S. Washington, D.C. knows another global pandemic will arise. The question is how do we ensure the U.S. the best prepared when it does?”
According to a statement, “Seth Denson, Market Analyst/Business Leader/Healthcare Expert
“Seth Denson is the Co-Founder & Chief Strategist at GDP Advisors. In addition to his role at GDP, he is an author, public speaker and a regular commentator for numerous media outlets including Fox News, ABC, CBS, and NBC. He is the author of The Cure: A Blueprint for Solving America’s Healthcare Crisis, a regularly published contributor to a number of print and online publications, and is a highly sought after keynote speaker on topics ranging from business to healthcare to politics and even fatherhood. Originally from Midland, Texas, but with experience in markets throughout the United States, including New York, Dallas/Fort Worth, and San Francisco, Seth blends metropolitan thinking with straightforward West Texas business ethics. He has served as a consultant for companies ranging from Fortune 500 organizations to privately held organizations and is a founding board member of ParadigmRe, a U.S. based health reinsurance captive.”