The US Food and Drug Administration (FDA) has proposed a rule that, if finalised, would create a streamlined registration pathway for distributed manufacturing establishments that operate as a single establishment using a “hub-and-spoke” model. The proposed rule would also clarify registration requirements for certain foreign establishments that manufacture drugs, including Active Pharmaceutical Ingredients (APIs), that indirectly enter the US drug supply.

This action is another step forward in the FDA’s coordinated effort to help ensure Americans have reliable access to safe, quality medicines by strengthening domestic pharmaceutical manufacturing, and ensuring that regulatory frameworks keep pace with innovation.

Distributed manufacturing establishments operate using a “hub-and-spoke” model, with a central quality oversight hub and multiple equivalent manufacturing units at different locations. Currently, regulations require each manufacturing unit in such a network to register separately, creating unnecessary administrative burdens. Under the proposed rule, distributed manufacturing establishments could register as a single establishment. Units could be added, relocated or removed through a streamlined update process, and companies would be required to notify the FDA in advance of any unit relocation, closing a gap in the agency's real-time oversight.

Michael Davis, MD, PhD, Acting Director, Center for Drug Evaluation and Research (CDER), FDA, said, “The FDA is proposing changes to our establishment registration regulations that would reflect how distributed manufacturing actually works—as one single establishment. The proposed changes would make it easier for innovative manufacturers to operate efficiently, and give the FDA a clearer, more accurate picture of how and where drugs are being made.”

The proposed rule would also clarify registration and drug listing requirements for certain foreign drug manufacturing establishments. Currently, some foreign establishments that manufacture drugs (including components of drugs, such APIs) only for distribution to other foreign establishments may not be registered with the FDA, limiting the agency’s visibility into upstream supply chains. By aligning our regulations to the statutory requirements, this proposed rule would make it clearer that these establishments must register with the FDA and report on the drugs they produce, giving the FDA greater ability to detect and respond to potential safety concerns.

Dr. Davis added, “When an active ingredient in a medicine reaches an American patient, the FDA should be able to trace exactly where it came from. Closing this registration gap for foreign establishments is a concrete step toward increasing the supply chain transparency that patients deserve.”

If finalised, the proposed rule is expected to reduce registration costs for distributed manufacturing companies and generate long-term efficiencies for both industry and the agency. It builds on a series of administration actions aimed at revitalising American pharmaceutical manufacturing, improving supply chain transparency, and reducing vulnerabilities in the drug supply chain.