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You quoted the important part. Specifically, this paragraph negates your post. > 2004 Project Bioshield Act and $290 million in Project BioShield designated fu
by zelon88 4y ago
You quoted the important part. Specifically, this paragraph negates your post.
> 2004 Project Bioshield Act and $290 million in Project BioShield designated funding to purchase this supply of the drug. Amgen will maintain this supply in vendor-managed inventory. This approach decreases life-cycle management costs for taxpayers because doses that near expiration can be rotated into the commercial market for rapid use prior to expiry and new doses can be added to the government supply.
Read it carefully. Doses that approach expiration will be rotated into the commercial market and replenished with fresh doses.
There is very little cost to the supplier in doing that. They get to sell a healthy dose of medication for full retail value and the government always has a fresh, healthy supply. FIFO (First in, first out).
Most companies try to reduce the value of the products they have on hand to save in taxes and keep their operation lean. The government is basically stepping in and saying "We will make it worth your while to keep a bunch of this on hand. Just guarantee me X number of fresh doses and we're happy."
- ravel-bar-foo 4y agoYup. Here the government is not really maintaining a stockpile as conventionally imagined, but paying industry to rotate inventory through a buffer which is the size of the desired stockpile. Seems like this strategy would have avoided the 'expired PPE' problem we faced at the beginning of the pandemic.