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Walmart, McKesson Team With USAntibiotics to Bring Amoxicillin Production Back to U.S.

The companies pitch U.S.-made antibiotics as a buffer against tariff costs after recent shortages.

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Walmart partners with USAntibiotics to expand access to domestically made antibiotics.
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Overview

  • Announced this week, the collaboration will supply USA‑made amoxicillin directly to Walmart pharmacies, with McKesson distributing to hospitals, providers and pharmacies nationwide, and ClarusONE supporting sourcing.
  • USAntibiotics, which operates a 394,000‑square‑foot facility in Bristol, Tennessee, says it can produce enough amoxicillin to meet the nation’s full demand.
  • The partners frame the move as strengthening a domestic supply chain that faltered during the FDA‑declared amoxicillin shortage in 2022, when U.S. buyers relied heavily on overseas manufacturers.
  • Walmart and USAntibiotics say domestic sourcing is intended to protect patients from price pressure tied to global tariffs that took effect in August.
  • The announcement tracks with President Trump’s recent executive actions encouraging onshoring of drug manufacturing and restocking medical supply reserves, while leveraging Walmart’s nearly 5,000‑pharmacy footprint for reach.