Explore how API Innovation Center’s Goal of Reshoring Pharmaceuticals Creates Economic Growth for Missouri
- October 15, 2024
The API Innovation Center (APIIC), based in St. Louis, is set to become a driving force in reshoring U.S. manufacturing of active pharmaceutical ingredients (APIs), potentially generating up to $1.2 billion in regional economic growth over the next five years. This ambitious goal is backed by a new report from Washington University’s Center for Analytics and Business Insights (CABI) that underscores the importance of reducing the nation’s reliance on foreign-made APIs, which are essential for producing generic drugs.
Strengthening U.S. Pharmaceutical Supply Chain and Strengthening Missouri’s Economy
APIIC’s primary objective is to reshore 25 essential medications over the next five years. Reshoring the production of APIs creates a more secure pharmaceutical supply chain in the U.S. and improves public health preparedness, but is also expected to enhance Missouri’s skilled workforce and economic infrastructure.
The economic benefits of this effort are vast, with each drug’s production expected to contribute up to $51 million in regional economic activity over the next 15 years. The projected $1.2 billion in economic growth includes job creation, supporting industries, and local spending by wage earners.
Federal and State Support for API Reshoring
APIIC’s vision has attracted both federal and state support. In September, the center was awarded $14 million from the Biden-Harris Administration’s Defense Production Act Title III fund to advance domestic production of APIs for essential medicines, including treatments for asthma, diabetes, and anxiety disorders. The State of Missouri has also committed approximately $18 million to support APIIC’s reshoring efforts, setting an example for other states on how to address national supply chain vulnerabilities.
A Stronger Future for Missouri and U.S. Pharma
APIIC’s efforts are a cornerstone in reshaping the U.S. pharmaceutical landscape, strengthening national health security and boosting regional economic development. With ongoing support from the state and federal governments, APIIC is poised to make Missouri a leader in the production of essential APIs, ensuring a more resilient future for both the community and the nation.