Fact Sheet: President Donald J. Trump Ensures American Pharmaceutical Supply Chain Resilience by Filling the Strategic Active Pharmaceutical Ingredients Reserve

8/13/2025

Fact Sheets

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Action Summary

Purpose: Enhance U.S. pharmaceutical security by establishing a robust Strategic Active Pharmaceutical Ingredients Reserve (SAPIR) to secure a domestic supply chain for essential medicines.
Critical Stockpiling:
- The Office of the Assistant Secretary for Preparedness and Response (ASPR) is tasked with identifying approximately 26 critical drugs.
- ASPR will obtain a 6-month supply of domestic APIs, with a plan to update the 2022 list of 86 essential medicines.
- A proposal for a second SAPIR repository is to be developed to further enhance supply resilience.
Addressing Vulnerabilities:
- Only about 10% of APIs for U.S. prescription drugs are produced domestically, leaving the nation vulnerable to global supply chain disruptions.
- Stockpiling APIs, which have longer shelf lives and lower costs, is key to mitigating emergency shortages.
Policy Continuity and Self-Reliance:
- Reaffirms previous executive actions by President Trump in 2020 and May 2025 aimed at increasing domestic procurement and removing regulatory barriers.
- Emphasizes efforts to restore American self-reliance in the pharmaceutical sector through competitive pricing and enhanced domestic production.

Risks & Considerations

The Executive Order to bolster the pharmaceutical supply chain by filling the Strategic Active Pharmaceutical Ingredients Reserve (SAPIR) could lead to increased domestic production of APIs. This may impact Vanderbilt University’s research and development initiatives, particularly in pharmaceutical sciences and supply chain management.
There is a risk that the focus on domestic production could lead to increased costs for pharmaceutical companies, which may affect research funding and partnerships with universities like Vanderbilt.
The emphasis on domestic manufacturing may create opportunities for Vanderbilt to collaborate with federal agencies and pharmaceutical companies to develop innovative solutions for supply chain resilience.
Vanderbilt may need to consider how these changes in the pharmaceutical supply chain could affect its medical and health-related programs, particularly in terms of research focus and funding opportunities.

Impacted Programs

Vanderbilt University Medical Center may see increased demand for research and expertise in pharmaceutical supply chain resilience and domestic production of APIs. This could present opportunities for collaboration with federal agencies and pharmaceutical companies.
School of Engineering at Vanderbilt might need to adjust its research strategies to accommodate new technologies and processes related to domestic pharmaceutical manufacturing.
The Office of Research could play a crucial role in securing funding for projects related to pharmaceutical supply chain resilience and domestic production of essential medicines.
Vanderbilt’s partnerships with pharmaceutical companies for research and development may need to be reevaluated to ensure alignment with the new policies on domestic production and supply chain resilience.

Financial Impact

The reallocation of federal funds towards domestic pharmaceutical production initiatives could impact the funding landscape for research institutions, potentially leading to increased financial support for projects related to supply chain resilience.
Vanderbilt University might experience changes in its funding opportunities, particularly if federal discretionary grants prioritize pharmaceutical supply chain resilience. This could necessitate adjustments in grant application strategies and partnerships.
There may be increased opportunities for Vanderbilt to secure funding for research and development in pharmaceutical sciences and supply chain management, particularly through collaborations with the Department of Health and Human Services and other federal agencies.
As domestic production becomes more prevalent, there could be a shift in the focus of research and development projects at Vanderbilt, potentially affecting funding distribution and research priorities.

Relevance Score: 3 (The order presents moderate risks typically involving compliance or ethics, with potential impacts on research and funding opportunities.)

Key Actions

Vanderbilt University Medical Center should explore partnerships with pharmaceutical companies to support the domestic production of Active Pharmaceutical Ingredients (APIs). By collaborating on research and development initiatives, Vanderbilt can contribute to strengthening the national pharmaceutical supply chain and enhance its role in public health preparedness.
The School of Medicine should consider developing educational programs focused on pharmaceutical manufacturing and supply chain management. This could position Vanderbilt as a leader in training the next generation of professionals equipped to address supply chain vulnerabilities in the pharmaceutical industry.
Vanderbilt’s Office of Federal Relations should engage with policymakers to advocate for funding and support for research initiatives aimed at enhancing pharmaceutical supply chain resilience. By aligning with national priorities, Vanderbilt can secure resources to advance its research capabilities in this critical area.
The Center for Health Policy should conduct research on the implications of domestic pharmaceutical production policies on healthcare access and affordability. This research can provide valuable insights to inform policy decisions and enhance Vanderbilt’s influence in shaping national health policy.

Opportunities

The executive order presents an opportunity for Vanderbilt’s School of Engineering to engage in research and development of innovative technologies for pharmaceutical manufacturing. By leveraging its expertise in engineering and technology, the school can contribute to the advancement of domestic production capabilities.
Vanderbilt can capitalize on the focus on pharmaceutical supply chain resilience by developing interdisciplinary research initiatives that bring together experts from medicine, engineering, and public policy. This collaborative approach can enhance Vanderbilt’s reputation as a leader in addressing complex healthcare challenges.
The emphasis on restoring American self-reliance in pharmaceutical production aligns with Vanderbilt’s commitment to innovation and leadership in healthcare. The university can develop targeted outreach and support programs to engage with industry partners and policymakers, enhancing its impact on national health security.

Relevance Score: 4 (The order presents the potential for major process changes required for Vanderbilt’s programs due to its impact on pharmaceutical research and education.)

Average Relevance Score: 2.4

Timeline for Implementation

N/A – The directive does not specify an explicit deadline for achieving the six-month supply or completing other outlined actions.

Relevance Score: 1

Impacted Government Organizations

Department of Health and Human Services (HHS) – Office of the Assistant Secretary for Preparedness and Response (ASPR): The ASPR, operating under HHS, is directly responsible for executing the Executive Order by developing critical drug lists, stockpiling a 6-month supply of Active Pharmaceutical Ingredients (APIs), and planning for an additional SAPIR facility to secure a domestic pharmaceutical supply chain.

Relevance Score: 1 (Only one primary agency, with its specific office, is impacted by this Executive Order.)

Responsible Officials

Office of the Assistant Secretary for Preparedness and Response (ASPR) – Tasked with developing the list of critical drugs, securing a 6‑month supply of Active Pharmaceutical Ingredients, updating the essential medicines list, and proposing the establishment of a second Strategic Active Pharmaceutical Ingredients Reserve.

Relevance Score: 3 (Directives affect a deputy/director level official within a federal agency.)