Lab supplier Merck KGaA says U.S. Defense Production Act poses challenge By Reuters

FRANKFURT (Reuters) – Merck KGaA on Wednesday said that U.S. regulations that give priority to U.S. government contracts to purchase COVID-19 vaccines are a challenge as its seeks to meet soaring demand for its lab equipment and supplies across the globe.

“We are actively expanding our capacity to be able to supply this unprecedented and ever increasing demand. Is this being a challenge? Obviously it is being a challenge,” Chief Executive Belen Garijo said in a media briefing when asked what impact the U.S. Defense Production Act is having on its ability to serve vaccine makers elsewhere in the world.

She said it is required by U.S. law to give preference to so-called rated state orders for COVID-19 programmes over any other orders.

“For us, all our customers and all the other COVID-19 programmes are very crucial and we are making capacity expansion a top priority of our agenda,” she said, pointing to ongoing investment projects both in the United States and Europe.