U.S. President Donald Trump has significantly reduced foreign aid, causing disruptions in the domestic pharmaceutical and biotech industry’s drug exports.
According to the pharmaceutical industry on the 8th, SHINPOONG exported 10 billion won worth of the malaria treatment 'Pyramex' through the U.S. Agency for International Development (USAID) last year, but it has not received a single order this year.
'Pyramex,' which was approved as a new drug in Korea in 2011, has been steadily supplied to designated countries such as Africa since SHINPOONG signed a long-term supply agreement (LTA) with USAID in 2019, renewing it each year.
However, this year, the Trump administration's drastic cuts to the aid budget and the reduction of the USAID organization have halted the procurement of pharmaceuticals. A representative from SHINPOONG noted, "We continue to explore the possibility of supply, but communication has ceased since the contact person was laid off."
During the same period, SD Biosensor has also been supplying malaria rapid diagnostic kits to USAID, but the supply of some items has been postponed, and it has been reported that Access Bio and Celltrion have no export performance through USAID this year.
Access Bio has participated in supplying diagnostic kits for COVID-19 and malaria, while Celltrion was once selected as the preferred negotiator for the AIDS treatment 'Temixis.'
USAID is the agency that executed nearly half of the total U.S. overseas aid budget of $61 billion last year. Since its establishment by President Kennedy in 1961, it has become the world's largest development cooperation organization, with an annual budget of $42.8 billion.
However, after President Trump reclaimed office in January of this year, he initiated a restructuring to integrate USAID under the State Department due to expenditure cuts, resulting in a large-scale reduction of the organization, leaving only about 290 of the total 10,000 employees.
An industry official said, "As USAID is effectively moving toward disbandment, we are considering private institutions like the Bill & Melinda Gates Foundation as alternative channels, but it will be difficult to recover to previous levels."