In a surprise move, HHS’ Biomedical Advanced Research and Development Authority (BARDA) has awarded a new Virginia-based company a $354 million contract to produce active pharmaceutical ingredients (APIs) and finished drugs for treatment of COVID-19 patients.

Phlow, which is led by Eric Edwards — co-founder of novel drug developer Kaleo in Richmond, Va. — will provide U.S.-based manufacturing to create a Strategic Active Pharmaceutical Ingredients Reserve (SAPIR), a companion to the nation’s strategic stockpile of essential products. It’s part of the Trump administration’s efforts to reduce reliance on foreign-produced goods.

Phlow has partnered with Civica Rx, AMPAC Fine Chemicals and Virginia Commonwealth University's Medicines for All Institute to manufacture chemical precursor ingredients, APIs and finished dosage forms of more than a dozen medicines to treat patients hospitalized with COVID-19 illnesses.

The four-year BARDA contract may be expanded into a $812 million contract over 10 years, BARDA said.