The Trump US administration has signed a $345m four-year contract with Virginia-based Phlow Corp to manufacture generic medicines and active pharmaceutical ingredients to help treat Covid-19, according to the New York Times (NYT).

The aim is to prevent shortages of essential medicines and reduce the US market’s dependence on India and China to manufacture necessary drugs; the latter is in line with Trump’s ‘America first’ policy.

The NYT reported that there have been indications that this contract could be expanded to $812m over ten years.

The US administration is set to release further details of this investment into Phlow Corp later on today.