The Food and Drug Administration on Tuesday halted nearly all inspections of overseas plants that ship drugs, medical devices and other consumer goods to the US, citing the global spread of the coronavirus. The agency announced it will postpone most foreign inspections scheduled through April, because of federal guidelines prohibiting travel for government workers. Last month, it postponed most inspections in China.
The FDA is responsible for ensuring that food, drugs, cosmetics, medical supplies and other U.S. imports are produced in safe, sanitary conditions that meet quality standards. Last year, it conducted more than 3,100 foreign inspections, according to agency records. But regulators have struggled for years to monitor increasingly far-flung supply chains, particularly those of the pharmaceutical industry.
More than 90% of the drugs prescribed in the U.S. are generics, and over time, most drugmakers have moved their manufacturing to Asia and other regions to take advantage of cheaper labour and materials. The FDA’s oversight of foreign plants has come under renewed scrutiny since 2018, with dozens of recalls triggered by traces of cancer-causing chemicals found in medications for blood pressure and other common conditions.
Read EquityPandit’s Nifty Outlook for the Week