By Kathleen Berger, Executive Producer for Science and Technology

Generic drug shortages in hospitals have been a persistent problem, according to the American Hospital Association (AHA). The American Medical Association (AMA) recently declared drug shortages to be an urgent public health crisis and a national security threat.

“In April 2023, there were 320 drug shortages—the highest number in our country’s history,” said Gerren McHam, Director of Government and External Affairs, API Innovation Center (APIIC).

McHam said the API Innovation Center offers a solution that’s already taking root in St. Louis. He explained that the core issue behind drug shortages is the manufacturing of the active pharmaceutical ingredient (API), the part of the drug that has the therapeutic effect.

The API Innovation Center specializes in finding creative and innovative ways to reshore API manufacturing, starting in Missouri.

“Only 5% of the largest API facilities are in the United States; 95% are outside the U.S. in places like India and China,” said McHam. He further explained that 83% of the top 100 drugs have no U.S. API source.

“You see news stories after news stories about patients not being able to get the critical medicines they need,” he said.

The API Innovation Center received a $14 million federal grant. This is an investment to generate local pharmaceutical manufacturing for national security and supply chain reasons.

Additionally, the Missouri Department of Economic Development is providing $9.55 million for the new partnership between the API Innovation Center (APIIC) and the University of Missouri-St. Louis (UMSL) as they collaborate in a new state-of-the-art laboratory inside the Science Learning Building at UMSL.

They share a goal of reshoring API production to enhance national health security, all starting in the St. Louis region. The new investment will advance critical research and development at UMSL and demonstrate Missouri’s commitment and support for pharmaceutical independence.

“We use what we call a Missouri model. It’s a different approach to how we actually develop the drug—from the R&D, the research and development, to the final drug product—using a consortium, a partner network, where we can leverage everyone’s individual talents,” McHam said. “We also focus on understanding which drugs are in shortage, which ones are the highest in need, and what we can do with current technologies where we can make investments.”

The funding will help position Missouri as a pharmaceutical manufacturing hub, by utilizing the new “Missouri model” for partnerships and API solutions.