The United States is set to increase its manufacturing of amoxicillin — a widely used prescription antibiotic that recently faced a national shortage — after Walmart and medical supply and distribution company McKesson inked a deal with the nation's lone manufacturer of the drug.
"We are thrilled to work with Walmart and McKesson to bring domestically manufactured antibiotics directly to American families," Patrick Cashman, president of USAntibiotics, said in a press release of the announcement on Monday.
"We extend our deepest gratitude to Walmart and McKesson for their leadership in supporting U.S. manufacturing of critical generic medicines. This collaboration represents more than a business relationship — it's a commitment to America’s health security."
USAntibiotics is located in Bristol, Tennessee, and expects to "produce enough amoxicillin products to meet 100 percent of the nation’s demand for these essential medications" under the deal. Walmart pharmacies will offer the U.S.-made amoxicillin, while McKesson will provide the antibiotic through its massive national distribution services, according to the press release.
President Donald Trump signed a pharmaceutical executive order in May at the White House while flanked by Department of Health and Human Services leadership. (Andrew Harnik/Getty Images)
A source close to the Trump White House pointed to the president's repeated comments calling on industries to move back to the U.S., which Trump has championed as a plan that would not only bolster U.S. jobs, but also the country's supply chain.
"President Trump has been repeatedly calling to onshore and expand manufacturing of critical pharmaceutical supply chains and so it’s good to see some major American companies actually heeding his call to get this done," the source told Fox News Digital.
Amoxicillin, which was discovered by U.K. scientists in the 1950s, treats bacterial infections such as pneumonia and is the most commonly prescribed antibiotic for children, Fox News Digital previously reported. It was first approved for use in the U.S. in the 1970s.
The common antibiotic Amoxicillin Trihydrate displayed at a hospital pharmacy. The drug faced a nationwide shortage in 2022. ( Susan L. Angstadt/MediaNews Group/Reading Eagle via Getty Images / Getty Images)
The FDA declared a national shortage of amoxicillin in 2022, which persisted into the next year as experts pointed to the U.S. supply chain relying on foreign nations such as China and India to provide common drugs while U.S. use of the prescription increased, Fox Digital previously reported.
Lowering drug costs and bringing manufacturing back to U.S. soil has been a top priority for Trump under his second administration.
US President Donald Trump has repeatedly railed against pharmaceutical prices for U.S. consumers and has rallied companies to onshore their operations through executive orders and presidential actions. (Aaron Schwartz/CNP/Bloomberg via Getty Images / Getty Images)
"We don't make our own pharmaceuticals, drugs and other things to get better," Trump said back in April of the U.S.' drug supply chain and high pharmaceutical costs for consumers. "They're made in other countries, and you pay a number. I mean, the same package in our country compared to, like, London and other places is sometimes 10 times more, 10 times more. Something that sells for $88 in London, sells for $1,300 here, made in the same factory by the same company. And that's over."
Trump signed an executive order in August aimed to bolster the U.S. medical supply chain by directing the Department of Health and Human Services to restock a drug-ingredient reserve that Trump established in 2020 when the pandemic raged and medical supplies faced shortages. The August executive order followed Trump signing a pair of EOs in May, including one directing the removal of regulatory barriers to encourage domestic drug production, and another that aimed to lower drug prices for consumers.
Fox News Digital's Melissa Rudy contributed to this report.