Hearings to examine made in America, focusing on restoring trust in our medicines

US-China Technology CompetitionSenate Aging (Special) · November 19, 2025 · 119th Congress
The Senate Special Committee on Aging held this hearing to examine why the United States depends on foreign sources — particularly China and India — for generic medicines and active pharmaceutical ingredients (APIs), and to hear from domestic manufacturers about barriers to expanding U.S. Begins at ▶ 0:11:11
Transcript
Highlights

Title

Restoring domestic manufacturing of generic drugs and antibiotics

Purpose

The Senate Special Committee on Aging held this hearing to examine why the United States depends on foreign sources — particularly China and India — for generic medicines and active pharmaceutical ingredients (APIs), and to hear from domestic manufacturers about barriers to expanding U.S. production. Witnesses from CivicaRx, Oxford Pharmaceuticals, USAntibiotics, and Phlow described low prices, procurement rules, and lack of demand certainty as key obstacles, and proposed reforms including country-of-origin labeling, Section 232 national security investigations, and federal procurement preferences. Begins at▶ 0:11:11

Who spoke

• Chair Rick Scott (R-FL)▶ 0:11:11: Said nearly 80% of active drug ingredients come from foreign sources, mostly adversary nations▶ 0:11:11; pressed witnesses on FDA inspections, showing violations found at foreign plants (lizards, roaches) would shut down a U.S. plant▶ 1:02:37; closed by pledging legislation on country-of-origin labeling▶ 0:44:21.

• Sen. Kirsten Gillibrand (D-NY), Ranking Member▶ 0:14:37: Cited 53 million Medicare Part B enrollees relying on generics▶ 0:14:53 and a Brooklyn constituent unable to get medication for 1.5 months▶ 0:15:52; noted U.S. generic-formulation facilities fell 27% and API facilities 38% since 2013, with 83% of top 100 generics having no U.S. API source▶ 0:16:42; asked witnesses about cybersecurity risks and what federal supports would help▶ 1:08:03▶ 1:11:39.

• Allan Coukell, CivicaRx Chief Government Affairs and Public Policy Officer▶ 0:19:31: Said Civica supplies 60 health systems with 50+ injectable drugs and has shipped over 240 million vials in seven years▶ 0:19:31; described a "no China policy," a six-month buffer inventory, and uniform pricing▶ 0:20:03; said many injectable drugs sell for less than $1 a vial, making U.S. production financially unviable without purchaser support▶ 0:21:25; confirmed the 2008 heparin contamination was "economically motivated adulteration" from China▶ 0:46:01.

• Tom Neely, Chairman of Oxford Pharmaceuticals▶ 0:25:27: Said his wife has Parkinson's and relies on a generic Oxford cannot supply because hers is Chinese-made▶ 0:25:59; said Oxford invested $130 million but operates at only 55% capacity due to price-driven distributor contracts▶ 0:29:22; said $18 million in capital investment could quadruple output from 180 million to over 600 million doses monthly▶ 0:59:41; said 38 cents of every dollar spent goes to quality▶ 1:07:09.

• Patrick Cashman, President of USAntibiotics▶ 0:31:42: Said his firm is the last domestic amoxicillin manufacturer, rescued from bankruptcy in 2021 by Jackson Health Care▶ 0:32:35; said China supplies ~45% of amoxicillin API globally and his firm controls only 5% of the U.S. market despite capacity for 100%▶ 0:34:17; said the firm is barred from federal prime contracts because its ownership makes it ineligible as a small business, while HHS spent ~$40 million on foreign-origin amoxicillin during the same period▶ 0:35:34.

• Dr. Eric Edwards, CEO of Phlow-USA▶ 0:38:06: Warned that pharmaceutical dependence is a national security threat that could compromise military readiness▶ 0:39:29; said Phlow has completed five API development programs and filed four FDA drug master files▶ 0:40:50; said the market won't shift without aligned procurement incentives rather than lowest-cost purchasing▶ 0:56:43; said 100% of Department of War/VA business "would make money for the first time in 10 years" for his company▶ 1:18:20.

• Sen. Ron Johnson (R-WI)▶ 0:44:42: Connected the current shortages to the 2008 heparin contamination scandal▶ 0:45:16; questioned witnesses on the scope of precursor chemicals, learning there are thousands, mostly made in China▶ 0:47:27.

• Sen. Tommy Tuberville (R-AL)▶ 0:24:25: Introduced witness Tom Neely▶ 0:24:25; asked Neely about federal procurement processes and a bid lost to a Chinese-American/India-American partnered firm▶ 0:57:52▶ 0:59:19.

Key moments

• 80% of active pharmaceutical ingredients in U.S. prescription drugs come from foreign sources▶ 0:11:11; 83% of the top 100 generic drugs have no U.S.-based API source, and another 11% have only one domestic source▶ 0:16:42.

• Oxford sells 100 tablets for $1.50 while Medicare reimburses the same quantity at $13.25, with the difference mostly captured by middlemen▶ 0:28:03.

• USAntibiotics sold roughly $1 million to the federal government since January 2023 while HHS spent about $40 million on foreign-origin amoxicillin, because contracts were structured as small-business set-asides that exclude the domestic manufacturer▶ 0:35:09▶ 0:35:34.

• Cashman said if his plant closed, no finished amoxicillin doses would be produced in the United States, leaving total dependence on China and India▶ 1:05:04.

• Chair Scott noted the FDA often gives weeks of advance notice before inspections, contrasting this with a recent finding of lizards and roaches at an Indian plant that would have shut down a domestic facility▶ 1:02:16▶ 1:02:37.

• Neely said an informal survey of his own family's 23 generic prescriptions found 20 made in India, two in China, one in Canada, and none in the United States▶ 1:20:55.

• Neely said $18 million in capital expenditure could quadruple Oxford's output from 180 million to over 600 million doses a month, but distributors' sole focus on price has kept the plant at reduced capacity▶ 0:59:41▶ 1:00:12.

• Edwards said the U.S.-China Economic and Security Review Commission's newly released annual report calls for disclosure of country of origin for all APIs and key starting materials▶ 0:56:15.

• Dr. Edwards cited a 2017 ransomware attack on Merck causing over $1 billion in potential damages as evidence of pharmaceutical supply-chain cyber vulnerability▶ 1:10:15.

• Coukell said heparin can be sourced from U.S. API, but it costs more than Chinese heparin, illustrating that fixing supply-chain risk requires purchasers willing to pay more for domestic sourcing▶ 0:46:40.

Metadata

CommitteeSenate Aging (Special)
Chamber / CongressSenate · 119th Congress
DateNovember 19, 2025
TypeMeeting
Witnesses
(none listed in event metadata)
Videosenate-isvp
Transcript216 caption blocks · 9,857 words · 1:27:28 runtime
EventCongress.gov 337652