Recent policy changes have helped accelerate reshoring of drug manufacturing to the U.S., particularly in Virginia.

However, most of the new investment is coming from branded drugmakers. Unfortunately, those same incentives won’t be sufficient for generic drug manufacturers. In an interview with Virginia Economic Development Partnership, Managing Partner Michael Abrams explained the challenges generics manufacturers face in reshoring production.

They’re working with small margins in a very competitive space. Much of the time, they cannot afford to build their own plant and pay U.S. labor rates unless there’s some other offset.

Abrams noted that if reshoring is truly about strengthening supply chain resilience, especially for essential medicines, the generics market can’t be overlooked.

Read the full story at vedp.org.