Birmingham Drugmaker Stands Apart in US Reliance on Foreign Generics

Oxford Pharmaceuticals bucks industry trend by manufacturing generic drugs in the US, raising concerns about quality control and oversight abroad.

Published on Feb. 12, 2026

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As the US increasingly relies on foreign-made generic drugs, one pharmaceutical company in Birmingham, Alabama, Oxford Pharmaceuticals, stands out by continuing to manufacture its products domestically. The company's chairman, Tom Neely, argues that the lack of oversight and quality control at many overseas facilities, particularly in India, poses risks to patient safety that his company avoids through rigorous testing and compliance.

Why it matters

The shift of generic drug manufacturing overseas has raised concerns about the safety and quality of medications Americans rely on, with numerous recalls and issues uncovered at foreign facilities. Oxford Pharmaceuticals represents a rare example of a US-based generic drugmaker competing against cheaper imports, highlighting the tradeoffs between cost and quality in the pharmaceutical supply chain.

The details

Oxford Pharmaceuticals operates a production facility in Birmingham where employees focus extensively on quality control, testing every batch before it leaves the building. In contrast, Neely points to incidents where Indian manufacturers have locked out FDA inspectors and been found operating in unsanitary conditions. Despite these quality issues, Neely says the purchasing decisions of insurance companies, pharmacy benefit managers, and distributors continue to prioritize cost over quality, making it difficult for US-based companies like his to compete.

  • In the last year, multiple Indian manufacturers have had the same three drugs recalled.
  • Last fall, FDA inspectors were locked out of an Indian facility for two hours before finding bird nests, lizards, and cats among pharmaceutical ingredients.

The players

Oxford Pharmaceuticals

A pharmaceutical company based in Birmingham, Alabama that continues to manufacture generic drugs in the United States, bucking the industry trend of shifting production overseas.

Tom Neely

The chairman of Oxford Pharmaceuticals who has raised concerns about the lack of oversight and quality control at many overseas drug manufacturing facilities, particularly in India.

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What they’re saying

“They would shut me down and probably put handcuffs on me. I'm dead serious. And they should.”

— Tom Neely, Chairman, Oxford Pharmaceuticals (kmph.com)

“Quality stops at the manufacturer and does not pick back up until it goes to the pharmacy. It's all about price, who is going to be awarded the formulary, and these are all tied to the insurance companies, to the PBMs (Pharmacy Benefit Managers) and to the distributors.”

— Tom Neely, Chairman, Oxford Pharmaceuticals (kmph.com)

What’s next

Lawmakers are now considering proposals such as the 'Clear Labels Act,' which would require drug labels to disclose where medicines are made.

The takeaway

This case highlights the tradeoffs between cost and quality in the US pharmaceutical supply chain, as the reliance on cheaper, foreign-made generic drugs raises concerns about safety and oversight. Oxford Pharmaceuticals' commitment to domestic manufacturing and rigorous quality control stands in contrast to many overseas facilities, underscoring the need for greater transparency and incentives to support US-based drug production.