FDA PreCheck: Boosting U.S. Drug Manufacturing in 2025

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Aug 13, 2025

The FDA's new PreCheck program promises to revolutionize U.S. drug manufacturing. Can it reduce reliance on foreign supply chains and boost national security? Click to find out!

Financial market analysis from 13/08/2025. Market conditions may have changed since publication.

Have you ever wondered where the medicines you take every day actually come from? It’s a question most of us don’t think about until a supply chain hiccup makes headlines—like during a global crisis when shelves go empty. Over half of the pharmaceuticals we rely on in the U.S. are made overseas, and that’s been raising eyebrows for a while now. The good news? There’s a bold new initiative on the horizon that’s set to change the game for American drug manufacturing. It’s called FDA PreCheck, and it’s not just another bureaucratic program—it’s a lifeline to strengthen our nation’s drug supply chain.

I’ve always believed that self-reliance is a cornerstone of security, and when it comes to something as critical as medicine, that’s doubly true. The U.S. has leaned heavily on foreign manufacturers for too long, and it’s created vulnerabilities. The FDA’s latest move, announced in August 2025, is a direct response to this reality, sparked by an executive order aimed at bringing drug production back home. Let’s dive into what this program is, why it matters, and how it could reshape the pharmaceutical landscape.

Why U.S. Drug Manufacturing Needs a Boost

The numbers tell a stark story. More than 50% of pharmaceuticals distributed in the U.S. are produced abroad, and only 11% of active pharmaceutical ingredient (API) manufacturers are based domestically. That’s a problem when you consider how much we depend on these drugs for everything from routine care to emergency treatments. The reliance on countries like China and India for APIs—the critical components that make drugs work—has been flagged as a national security risk by experts and policymakers alike.

Our gradual overreliance on foreign drug manufacturing has created national security risks.

– FDA Commissioner

This isn’t just about economics; it’s about ensuring Americans have access to life-saving medications when they need them most. A single disruption—like a geopolitical spat or a global health crisis—could cut off supply lines, leaving hospitals and pharmacies scrambling. The push to reshore manufacturing is about building a resilient supply chain that can weather storms, both literal and figurative. And that’s where FDA PreCheck comes in, offering a practical solution to a complex problem.


What Is FDA PreCheck, Anyway?

At its core, FDA PreCheck is a program designed to make it easier and faster for drug companies to set up shop in the U.S. Launched in response to an executive order from May 2025, it’s all about cutting red tape and boosting regulatory predictability. The idea is simple: streamline the process of building and approving new manufacturing facilities so companies can get up and running without jumping through endless hoops. But how does it actually work? Let’s break it down into its two key phases.

Phase 1: Facility Readiness

Building a pharmaceutical plant isn’t like constructing a warehouse. It’s a complex process that involves precise design, rigorous safety standards, and a whole lot of oversight. The Facility Readiness Phase is where the FDA steps in early to guide manufacturers through the maze. Instead of waiting until the end to inspect a finished facility, the agency offers frequent communication during critical stages like design, construction, and pre-production.

Here’s where it gets interesting. Companies can submit a Type V Drug Master File (DMF), a detailed document that lays out everything from the site’s layout to its quality management systems. Think of it as a blueprint that the FDA can review and provide feedback on before the facility even starts producing drugs. This early collaboration helps catch potential issues—like a poorly designed cleanroom or a weak quality control system—before they become expensive mistakes.

  • Enhanced FDA Communication: Regular check-ins during design and construction.
  • Type V DMF: A comprehensive file covering site operations and quality systems.
  • Proactive Feedback: Helps ensure compliance with current Good Manufacturing Practices (cGMP).

In my view, this phase is a game-changer. It’s like having a mentor guide you through a tough project rather than leaving you to figure it out and then grading you harshly at the end. By catching problems early, the FDA is not only saving companies time and money but also speeding up the path to production.

Phase 2: Application Submission

Once the facility is ready, it’s time to tackle the Application Submission Phase. This is where the rubber meets the road: getting the FDA’s approval to actually produce and sell drugs. The agency focuses on streamlining the Chemistry, Manufacturing, and Controls (CMC) section of the application, which details how the drug is made and how its quality is ensured.

Through pre-application meetings and early feedback, the FDA helps companies fine-tune their submissions. This isn’t just about dotting i’s and crossing t’s—it’s about making sure the application is rock-solid before it’s formally submitted. The goal? Faster approvals without compromising on safety or quality.

The PreCheck program is about making the regulatory process predictable and efficient, not cutting corners.

This phase feels like a breath of personally, I think it’s a smart move. Too often, companies get bogged down in endless back-and-forth with regulators, delaying production and driving up costs. By frontloading the feedback, the FDA is helping manufacturers hit the ground running.


Why Now? The Push for Reshoring

The timing of FDA PreCheck isn’t random. It’s a direct response to a growing chorus of concerns about America’s dependence on foreign drugs. The executive order that sparked this program, signed in May 2025, called for slashing unnecessary regulations and speeding up approvals for domestic plants. It’s part of a broader push to bring manufacturing back to U.S. soil, driven by both economic and security imperatives.

Big players in the pharmaceutical world are already jumping on board. Companies like Eli Lilly, AstraZeneca, and Johnson & Johnson have announced billions in investments to build or expand U.S. manufacturing sites. For example, Eli Lilly plans to spend $27 billion on four new plants, while AstraZeneca is committing $50 billion over the next five years. These aren’t small moves—they signal a seismic shift in how the industry views domestic production.

CompanyInvestment AmountPurpose
Eli Lilly$27 billionFour new manufacturing plants
AstraZeneca$50 billionExpand U.S. manufacturing and R&D
Johnson & Johnson$55 billionNew plants and expansion of existing ones

But it’s not just about the money. The threat of tariffs on pharmaceutical imports—potentially as high as 250%—is looming large. These tariffs, hinted at by the administration, could make foreign-made drugs prohibitively expensive, giving companies even more incentive to invest in U.S. facilities. It’s a classic carrot-and-stick approach: FDA PreCheck is the carrot, and tariffs are the stick.

The National Security Angle

Let’s talk about why this matters beyond the balance sheets. Imagine a scenario where a global conflict or another pandemic cuts off access to critical drugs. It’s not far-fetched—supply chain disruptions during the COVID-19 crisis showed just how fragile our system can be. When 69% of generic drugs and 53% of brand-name drugs are made overseas, that’s a vulnerability we can’t ignore.

The FDA’s commissioner put it bluntly: relying on foreign manufacturers poses national security risks. A robust domestic supply chain means we’re not at the mercy of global events. It’s about ensuring that hospitals have the antibiotics, heart medications, and cancer treatments they need, no matter what’s happening halfway across the world.

Key Stats on U.S. Drug Manufacturing:
  - 53% of brand drugs made overseas
  - 69% of generic drugs made overseas
  - Only 11% of API manufacturers are U.S.-based

In my opinion, this is one of the most compelling reasons to support FDA PreCheck. It’s not just about economics or jobs—it’s about safeguarding our health and independence. A country that can’t produce its own medicines is a country at risk.


Challenges and Open Questions

Of course, no program is perfect, and FDA PreCheck is still in its early stages. One big question is how much time it will actually save. Building a pharmaceutical plant can take five to ten years, and while the FDA promises to streamline things, the details are still fuzzy. What regulations will be cut? How will the agency balance speed with safety? These are questions that manufacturers—and patients—will want answered.

Another challenge is the complexity of pre-approval inspections. Even with early feedback, the FDA’s final approval hinges on how a facility operates in real time. A perfectly designed plant could still fail if its equipment isn’t properly calibrated or its quality systems aren’t up to snuff. This means companies will need to stay on their toes, even with the FDA’s guidance.

  1. Regulatory Hurdles: Unclear which rules will be eliminated or simplified.
  2. Inspection Risks: Real-time operations must meet strict cGMP standards.
  3. Implementation Timeline: Full impact may take years to materialize.

The FDA is seeking input on these issues through a public meeting on September 30, 2025, and an open comment period until October 30. They’re asking manufacturers to weigh in on everything from regulatory hurdles to how much information they’re willing to share early on. It’s a chance for the industry to shape the program, which could make or break its success.

The Bigger Picture: Innovation and Access

Some folks in the industry are worried that tariffs and a rush to reshore could stifle drug innovation. After all, global supply chains have allowed companies to keep costs down, freeing up funds for research and development. If domestic production becomes too expensive, will we see fewer breakthroughs? It’s a valid concern, but I think the benefits of a secure supply chain outweigh the risks. Plus, with programs like FDA PreCheck, the government is clearly trying to make domestic manufacturing as cost-effective as possible.

Then there’s the question of patient access. If tariffs jack up the price of imported drugs, will patients still be able to afford their medications? The administration has promised to address drug pricing, but it’s a tricky balancing act. For now, FDA PreCheck is a step toward ensuring that supply, not just cost, remains stable.

A resilient supply chain is the foundation of affordable, accessible medicine.

Perhaps the most exciting part of this initiative is its potential to create jobs and boost local economies. New manufacturing plants mean more opportunities for American workers, from engineers to lab technicians. It’s a win-win: stronger public health and a stronger economy.


What’s Next for FDA PreCheck?

The FDA is still hammering out the details of FDA PreCheck, and the public meeting on September 30 will be a key moment. Manufacturers, policymakers, and even patients will have a chance to weigh in on how to make the program as effective as possible. The agency is asking some big questions, like what the biggest regulatory hurdles are and whether companies are comfortable sharing detailed facility plans early on.

I’m optimistic about this program, but I’ll be watching closely to see how it’s implemented. If done right, it could be a model for how government and industry can work together to solve big problems. If it gets bogged down in bureaucracy or fails to deliver on its promises, it could be just another well-meaning idea that fizzles out.

For now, the pharmaceutical industry seems to be on board. With billions of dollars already committed to new U.S. plants, companies are betting on a future where domestic production is the norm, not the exception. And with FDA PreCheck paving the way, that future might be closer than we think.

So, what do you think? Could FDA PreCheck be the key to a stronger, more secure drug supply chain? Or is it just a drop in the bucket for a problem that’s been decades in the making? One thing’s for sure: the stakes are high, and the world is watching.

If you buy things you do not need, soon you will have to sell things you need.
— Warren Buffett
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Steven Soarez passionately shares his financial expertise to help everyone better understand and master investing. Contact us for collaboration opportunities or sponsored article inquiries.

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