Eli Lilly & Co. warned Wednesday that escalating US-China trade tensions could significantly affect its operations and could lead to further disruptions in supply chains and manufacturing. This was said in its annual report to the US Securities and Exchange Commission.
The pharmaceutical giant, which has manufacturing sites in the US, Ireland, Germany, and Puerto Rico, relies on global supply chains to meet product demand. While expanding operations in North Carolina, Wisconsin, and Indiana, Eli Lilly also depends on third-party suppliers, including those in China.
The company noted that proposed US legislation, such as the BIOSECURE Act, aims to reduce reliance on Chinese suppliers, potentially reshaping the pharmaceutical industry’s supply chains. "Among these third parties, we, and the pharmaceutical industry generally, depend on China-based suppliers for portions of our supply chain. US federal lawmakers are considering legislation that is intended to limit supply chain reliance on China, including the proposed BIOSECURE Act."
