US aid freeze sows disruption in HIV, malaria product supply chains
The U.S. government's foreign aid freeze has upended the supply chain for medical products crucial for fighting diseases including HIV and malaria in some of the world's poorest countries, and life-threatening gaps could persist for months, according to two sources familiar with the sector.
The U.S. Agency for International Development (USAID) usually places around $600 million of orders annually for products such as medicines, diagnostic tests and equipment like bed nets, as part of one of its biggest health supply contracts including HIV, malaria and reproductive health.
But the freeze has put orders and forecasts, particularly those made months in advance, on hold. That will likely have far-reaching implications for deliveries, cost, and timings, according to two sources with knowledge of the global health supply chain and others working in the sector.
Companies including the U.S. firm Abbott, Switzerland's Roche, and India's Cipla are all likely to be affected, alongside others including Hologic , Viatris, Hetero and Aurobindo, the first of the sources told Reuters.
"We are monitoring the situation closely. Our highest priority is to ensure that patients have continuous access to our diagnostic tests and treatments around the world," said a Roche spokesperson in response to Reuters' questions. The other companies either declined to comment or did not respond. The U.S. State Department did not immediately respond to requests for comment.
The first source said waivers from the U.S. government, intended to allow lifesaving work to restart, only applied to orders already moving around the world. Even those were not fully functional as the USAID payment system remained down, he said. Future funding and orders were more uncertain, even for companies where the raw materials have been assembled or the manufacturing capacity booked, he added.
Medicines and diagnostic tests for HIV and malaria, as well as preventive tools like bed nets and contraceptives, could be impacted, he said.
"There will be a huge backlog," said Fitsum Lakew Alemayehu, the African Union liaison manager at WACI Health, an African advocacy organization. "In Africa, millions have been on those treatments."
'BULLWHIP' EFFECT
The dismantling of USAID has already had significant impact across the globe, including shuttering HIV clinics, stranding emergency food aid, and halting research.
For medical supplies, the freeze could also hit prices, because companies have been able to operate more efficiently knowing that they would continue to get orders from USAID, all of the sources said.
Prashant Yadav, a medical supply chain expert and senior fellow at the nonpartisan Council on Foreign Relations think tank, said the upheaval could upend this system of advance demand forecasts entirely, hitting prices and ultimately risking budget shortfalls across other buyers, like governments and global health funders.
He said it was an example of the "bullwhip" effect in supply chains, where "any small changes, even if they are for a short duration of time, get amplified at every level in the system". The term is derived from a scientific concept in which movements of a whip are amplified from the origin - the hand cracking the whip - to the endpoint.
Even if the aid freeze ends after a 90-day review, as the Trump administration originally suggested, restarting production will be complex and there could be legal issues, several experts said.
"This is a huge mess to untangle," said Tom Cotter, chief executive officer at Health Response Alliance, a nonprofit organization dedicated to ensuring equitable access to health services during emergencies.
(Reporting by Jennifer Rigby, additional reporting by Maggie Fick in London, Rishika Sadam in Hyderabad)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arabian Post
5 days ago
- Arabian Post
HKSTP Teams Up with HKU and CUHK Medical Schools to Showcase Hong Kong's Life & Health Innovations at BIO International Convention
Seizing Global Business and Investment Opportunities for Sustainable Growth HONG KONG SAR – Media OutReach Newswire – 17 June 2025 – Hong Kong Science and Technology Parks Corporation (HKSTP), in collaboration with InvestHK, led 16 prominent life and health technology companies to BIO 2025, the world's largest biotechnology event, held in Boston, USA, from June 16 to 19. This year marks the first time HKSTP joined forces with Hong Kong's two leading medical faculties—the LKS Faculty of Medicine at The University of Hong Kong (HKU) and the Faculty of Medicine at The Chinese University of Hong Kong (CUHK) – to form a delegation, showcasing Hong Kong's cutting-edge research capabilities and innovation potential in life sciences and health technologies. The initiative further strengthens Hong Kong's position as a world-class biotech innovation hub. In collaboration with InvestHK, HKSTP joined forces with the LKS Faculty of Medicine at The University of Hong Kong (HKU) and the Faculty of Medicine at The Chinese University of Hong Kong (CUHK) for the first time to form a delegation and led 16 prominent life and health technology companies to showcase at BIO 2025 held in Boston, USA. The HKSTP Pavilion highlighted the groundbreaking technologies and products of its park companies, featuring innovative solutions across diverse fields such as novel drug development, diagnostic technologies, and medical innovation. Among the 16 participating companies, they were the members of HKSTP's incubation programmes including Incu-Bio and ELITE Programme, cutting-edge work from the InnoHK research centers, and other outstanding biotech companies. On the first day of the exhibition, the delegation successfully attracted attention from global industry leaders, corporate partners, and venture capital firms. ADVERTISEMENT During BIO 2025, HKSTP and its park companies made significant strides in fostering cross-border innovation ecosystems and exploring new market opportunities: Immuno Cure , partnering with HKUMed, the developer of the first-in-human novel therapeutic HIV vaccine ICVAX, announced its collaboration with PharmaJet to explore the application of a needle-free vaccination solution, accelerating the global commercialization pathway for ICVAX. , partnering with HKUMed, the developer of the first-in-human novel therapeutic HIV vaccine ICVAX, announced its collaboration with PharmaJet to explore the application of a needle-free vaccination solution, accelerating the global commercialization pathway for ICVAX. HKSTP signed a partnership agreement with DLRC to provide legal advisory services in clinical trials and certification, promoting global ecosystem collaboration and growth. Mr. Albert Wong, CEO of HKSTP, said: 'We are thrilled to partner with two leading medical schools for the first time at BIO 2025, demonstrating Hong Kong's breakthroughs and innovation in life and health technology. This delegation not only deepens collaboration between Hong Kong and top global research institutions but also highlights our unique advantages as a core I&T hub in the Greater Bay Area. With strong policy and funding support from the HKSAR government, Hong Kong will further serve as a bridge connecting Mainland China and global tech partnerships, solidifying its leadership in life sciences innovation.' Ahead of BIO 2025, the delegation participated in the '2025 Biomedical Pitch Competition', co-organized by the Boston Capital Investment Club (BCIC) and HKSTP. The event connects global life and health innovators with investors and business partners. Three HKSTP companies—ARBELE, GenEditBio, and Cogsmart—excelled in the preliminary rounds, competing against over 100 global life sciences firms, with ARBELE, HKUMed's affiliated spin-off company, winning the championship, underscoring Hong Kong's research excellence. Over the past three years, this platform has helped startups secure over USD 100 million in funding and connect with hundreds of international investors and partners, driving further business growth. HKSTP is committed to propelling Hong Kong's life sciences sector onto the global stage, showcasing the city's unique strengths to attract international enterprises and talent. The delegation also organized networking events and visits, enabling Hong Kong companies to engage with overseas investors, leading corporations, and renowned academic institutions, including visits to MIT Professor Robert Langer (Described as 'Edison of Medicine'), Harvard Innovation Labs, Cambridge Innovation Center, and more. This initiative reinforces Hong Kong's sustainable development in life sciences and its role as a global innovation leader. Appendix: List of Park Companies Participating in BIO 2025: ADVERTISEMENT Allegrow Biotech Limited ARBELE Limited Beth Bioinformatics Co., Limited Centre for Translational Stem Cell Biology The Centre for Virology, Vaccinology, and Therapeutics DECODE CURE Limited GenEditBio Limited Great Bay Bio Hong Kong Universal Biologicals Company Limited Immuno Cure Holding (HK) Limited The Institute for Innovation, Translation and Policy Research (ITPR) LEE'S PHARMACEUTICAL (HK) LIMITED Serilink Biotechnology Company Limited Xiaomo Biotech Limited XUXIN (HongKong) Biotechnology Co., Limited Zhaoke (Hong Kong) Ophthalmology Pharmaceutical Limited Hashtag: #HKSTP The issuer is solely responsible for the content of this announcement. About Hong Kong Science and Technology Parks Corporation Hong Kong Science and Technology Parks Corporation (HKSTP) was established in 2001 to create a thriving I&T ecosystem grooming 13 unicorns, more than 15,000 research professionals and over 2,300 technology companies from 25 countries and regions focused on developing healthtech, AI and robotics, fintech and smart city technologies, etc. Our growing innovation ecosystem offers comprehensive support to attract and nurture talent, accelerate and commercialise innovation for technology ventures, with the I&T journey built around our key locations of Hong Kong Science Park in Pak Shek Kok, InnoCentre in Kowloon Tong and three modern InnoParks in Tai Po, Tseung Kwan O and Yuen Long realising a vision of new industrialisation for Hong Kong, where sectors including advanced manufacturing, micro-electronics and biotechnology are being reimagined. Hong Kong Science Park Shenzhen Branch in Futian, Shenzhen plays positive roles in connecting the world and the mainland with our proximity, strengthening cross-border exchange to bring advantages in attracting global talent and allowing possibilities for the development of technology companies in seven key areas: Medtech, big data and AI, robotics, new materials, microelectronics, fintech and sustainability, with both dry and wet laboratories, co-working space, conference and exhibition facilities, and more. Through our R&D infrastructure, startup support and enterprise services, commercialisation and investment expertise, partnership networks and talent traction, HKSTP continues to contribute in stablishing I&T as a pillar of growth for Hong Kong. More information about HKSTP is available at
Hi Dubai
7 days ago
- Hi Dubai
UAE, Czech Republic Enhance Cooperation During GLOBSEC 2025
Reem bint Ebrahim Al Hashimy, Minister of State for International Cooperation, reinforced the UAE's growing ties with the Czech Republic during a working visit on the sidelines of the 20th GLOBSEC Forum, highlighting shared goals in healthcare, innovation, education, and global development. Al Hashimy held high-level meetings with Czech Foreign Minister Jan Lipavský and Deputy Prime Minister and Health Minister Vlastimil Válek. The discussions focused on enhancing bilateral initiatives, deepening multilateral cooperation, and exploring joint partnerships, particularly with African nations. A key outcome of the visit was the signing of a Joint Partnership Statement on trilateral development cooperation in the healthcare sector. The agreement aims to strengthen capacity-building and facilitate knowledge exchange in African countries. Al Hashimy also took part in a strategic dialogue titled 'GLOBSEC Chat – Strengthening Ties: EU–UAE Relations in a Changing Global Landscape,' hosted in collaboration with the Anwar Gargash Diplomatic Academy. The session addressed opportunities for broader UAE–EU cooperation in trade, technology, climate action, and regional stability. The visit reaffirmed the UAE's commitment to advancing international partnerships based on shared values and mutual interests, while underscoring its focus on stronger engagement with Central and Eastern Europe. News Source: Emirates News Agency
Arabian Post
12-06-2025
- Arabian Post
Breakthrough Antibiotic to Combat Deadly Superbug Advances
Swiss pharmaceutical firm Roche has advanced its antibiotic candidate, zosurabalpin, into Phase 3 clinical trials, representing a potential landmark in the fight against Gram-negative bacterial infections. Targeting carbapenem-resistant Acinetobacter baumannii, the drug could mark the first approval of a novel antibiotic class in more than 50 years. Zosurabalpin, a tethered macrocyclic peptide developed in collaboration with Harvard University, disrupts the outer lipopolysaccharide membrane essential for bacterial survival. Early-stage studies demonstrated favourable safety and pharmacokinetic profiles, while animal models of lung and thigh infections caused by CRAB confirmed its therapeutic potential. Roche anticipates enrolling approximately 400 hospitalised patients worldwide in the upcoming trial round, with the aim of comparing zosurabalpin directly against current standard-of-care antibiotics. The urgency of this development is underscored by CRAB's classification by the US Centers for Disease Control and Prevention as an 'urgent threat' and by the World Health Organization as a high priority pathogen. Infection fatality rates hover around 40–60%, particularly among immunocompromised patients such as those in intensive care. Existing antibiotics are often ineffective due to CRAB's robust outer membranes that thwart drug penetration. ADVERTISEMENT Phase 3 trials are scheduled to begin late this year or in early 2026, spanning over 100 global sites and aiming for regulatory submission by the decade's end. Roche executives emphasise that approval would not only address a dire clinical need but also serve as a catalyst for renewed antibiotic research, especially against Gram-negative organisms. 'Finding new classes is very hard,' noted Michael Lobritz, Roche's global head of infectious diseases; approval could lay groundwork for future innovation. Roche has previously stepped back from antibiotic R&D, but a reinvestment around ten years ago has now yielded zosurabalpin. The firm is simultaneously exploring additional novel compounds, including a LepB inhibitor targeting carbapenem-resistant Gram-negative pathogens in urinary tract infections. Efforts to restore antibiotic pipelines have gained traction from policymakers. The UK introduced a subscription-style payment model to support antimicrobial development, decoupling revenue from volume to ensure steady returns. The US is now considering similar incentives. Such frameworks aim to overcome financial disincentives that have plagued the industry, contributing to the closure of many smaller biotechs focusing on antibiotics. Meanwhile, complementary research is underway. A novel molecule named lariocidin was identified from soil bacteria by scientists at McMaster University. It targets the bacterial ribosome through a distinctive lasso-peptide structure but remains in preclinical stages. Similarly, researchers at MIT and McMaster have used artificial-intelligence methods to develop abaucin, a narrow-spectrum compound effective in killing CRAB. Both discoveries offer hope for expanding the antibiotic pipeline beyond zosurabalpin. Zosurabalpin's mechanism of action—from inhibiting lipopolysaccharide transport to compromising the bacterial envelope—distinguishes it from older therapies, which have often been broad-spectrum and prone to fostering resistance. By contrast, this new agent is narrow-spectrum, tailored to CRAB and avoiding pre-existing resistance mechanisms. The evolving antibiotic landscape now features roughly 20 candidates in clinical development for high-priority pathogens, though historical attrition rates remain troubling. Financial instability has led to the collapse of several promising antibiotic-focused firms, exemplified by Achaogen's bankruptcy in 2019 shortly after FDA approval of plazomicin. In light of these challenges, zosurabalpin represents a critical test case: its success could prove the viability of targeted, high-impact antibiotic development supported by improved economic incentives. As Roche and its collaborators gear up for the pivotal Phase 3 trial, global health advocates view the outcome not only as a potential therapeutic breakthrough, but as a signal of renewed momentum in a sector long plagued by stagnation.
