Bristol Myers Squibb (BMS), GSK, and Merck have agreed to contribute active pharmaceutical ingredients (APIs) to the Strategic Active Pharmaceutical Ingredients Reserve (SAPIR) as part of recent deals with the Trump administration. These agreements are intended to support U.S. supply chain resilience and reduce the risk of drug shortages.
At the end of 2025, the White House finalized Most Favored Nation pricing deals with nine pharmaceutical companies. According to analysts from Leerink Partners and Truist Securities, these deals largely followed previous agreements but included a new provision: BMS, GSK, and Merck would donate materials for a national API stockpile.
The White House described these actions as efforts to “reduce reliance on foreign nations and ensure the United States has an adequate supply of such products in the event of an emergency.” This aligns with other steps President Donald Trump has taken during his second term to strengthen domestic health security.
The SAPIR initiative began during Trump’s first term. After his re-election, he directed the Office of the Assistant Secretary for Preparedness and Response (ASPR) to build a six-month reserve of APIs for essential medicines and medical countermeasures.
As part of these arrangements, Merck will provide 3.5 tons of ertapenem, an antibacterial agent. GSK is set to contribute 98.8 kilograms of albuterol, used in asthma rescue inhalers like Ventolin—one of 86 medicines deemed essential by ASPR in 2022.
Emma Walmsley, who stepped down as GSK CEO at the end of 2025, said at a White House event: “investing in American health security by donating the ingredients that go into rescue inhalers . . . so that people can access them when they need them.”
BMS announced it would donate more than seven tons of API for its blood thinner Eliquis at no cost to taxpayers. The White House stated this would include tablets representing 6.5 tons of apixaban, Eliquis’s active ingredient and another medicine on ASPR’s essential list. A BMS spokesperson told BioSpace via email that specific terms remain confidential.
Cari Gallman, chief policy officer at BMS, said: “answering the administration’s calls . . . to shore up the national medicine reserves” by agreeing to contribute to the stockpile.
It remains unclear where these donated materials were produced. While Trump’s executive order encourages sourcing from domestic manufacturers “where possible,” it does not prohibit procurement from overseas suppliers. BMS declined to specify where its apixaban was made; until 2017 it produced this API in Ireland before selling that facility to SK Biotek. As of February 2025, BMS indicated it relies on third parties for some or all apixaban production needs.
GSK also declined to disclose details about albuterol manufacturing locations beyond what was shared publicly about its pricing deal. An ASPR spokesperson cited confidentiality agreements as limiting further disclosures; Merck did not respond to requests for comment.
The secrecy surrounding these agreements means questions remain about donation timelines and storage sites for APIs.
It is uncertain how much these donations differ from typical industry practices since pharmaceutical companies routinely maintain months’ worth of inventory as a buffer against supply disruptions—a strategy that became more common after pandemic-related shortages increased demand for certain drugs like albuterol inhalers.
An analysis by nVentic found that leading branded drugmakers had between roughly three and eleven months’ inventory outstanding in 2024; raw material inventories nearly doubled compared with pre-pandemic levels by 2023. This increase helps companies manage risks associated with interrupted trade routes or regulatory delays when switching API sources.
Erin Fox from the University of Utah explained there is no public information on how much API manufacturers keep in reserve because such data is considered proprietary: most companies likely keep at least six to twelve months’ worth unless subject to Drug Enforcement Administration rules—enough time for regulatory approvals if changes are needed. Fox noted this practice allows companies “to be sure they can do all of their testing etc. and not have a gap in supply.”
