A Win for the American Generic Drug Manufacturing Industry
WASHINGTON, D.C. — The Coalition for a Prosperous America (CPA) this week applauded the acquisition of Nivagen Pharmaceuticals by member company, PAI Pharma (PAI), of Greenville, SC and Sacramento, CA. This strategic investment strengthens America’s pharmaceutical infrastructure, enhances public health safety, and fortifies national security by reducing reliance on foreign suppliers like China and India for nearly 70-80% of our essential medicines. This acquisition should be seen as a transformative step forward in reshoring critical generic drug manufacturing to the United States, and as a milestone for bolstering U.S. manufacturing.
CPA has long championed the rebuilding of domestic capacity for generic drug manufacturing — a sector that has seen dramatic offshoring over the past two decades, leaving critical supply chains vulnerable and U.S. patients exposed to disruptions and safety risks. Last year, CPA submitted public comments to the Department of Commerce for its Section 232 National Security Investigation of Pharmaceutical Imports. CPA’s submission documented how extreme overreliance on foreign pharmaceutical supplies—especially active pharmaceutical ingredients (APIs) and critical injectable drugs from China and India—poses an urgent threat to U.S. national security and patient safety.
“The acquisition of Nivagen by PAI marks a pivotal victory for American manufacturing and for the millions of patients who depend on a safe, reliable supply of generic medicines,” said Jon Toomey, CPA President. “Strengthening our domestic pharmaceutical base is critical for public health resilience and national security. This transaction demonstrates the private sector’s commitment to onshore production and the promise of a renewed industrial ecosystem for essential drugs.”
CPA Economist Andrew Rechenberg underscored this urgent need in testimony before the Senate Special Committee on Aging in October, where he outlined CPA’s bipartisan strategy to revive domestic production and reduce dependence on imported generics through smart trade policy, incentives, and procurement reforms. Rechenberg emphasized that reshoring is not just an economic priority but a public health and national security imperative for America’s future.
CPA continues to advocate for policies that support domestic generic drug manufacturing, including long-term federal procurement, targeted incentives, improved regulatory oversight, and legislative action like the ‘PILLS Act’ — a comprehensive framework to incentivize reshoring and ensure stable supply chains.
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