HHS Invests $15M to Boost US Tamiflu Supply

Funding aims to expand domestic production of key ingredient to address recurring shortages.

Published on Feb. 20, 2026

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The U.S. Department of Health and Human Services is investing $15 million to scale up domestic production of shikimic acid, a crucial starting material for the antiviral drug Tamiflu (oseltamivir). The funding builds on a previous $32.4 million award to Waltham, Mass.-based Manus Bio and is part of a broader effort to strengthen the supply chain resilience of this important medication.

Why it matters

Tamiflu shortages have become a recurring issue, especially during severe flu seasons that see spikes in hospital admissions and outpatient visits. This investment aims to address the problem by reducing reliance on Chinese sources for shikimic acid, the key raw material used to manufacture Tamiflu.

The details

The Administration for Strategic Preparedness and Response, an HHS agency, is providing the $15 million in funding to Manus Bio to expand its domestic production capacity for shikimic acid. Currently, shikimic acid is sourced entirely from China, making the U.S. supply vulnerable to disruptions. The new investment builds on a previous $32.4 million award to Manus Bio and is part of a broader effort by HHS to strengthen the supply chain resilience of critical medications like Tamiflu.

  • In early 2026, parts of the U.S. experienced shortages of Tamiflu during a particularly severe flu season.
  • As of February 12, 2026, the American Society of Health-System Pharmacists reported 10 Tamiflu presentations in short supply and 20 available presentations.

The players

Administration for Strategic Preparedness and Response

An agency within the U.S. Department of Health and Human Services that is investing $15 million to expand domestic production of shikimic acid, a key ingredient for the antiviral drug Tamiflu.

Manus Bio

A biotechnology company based in Waltham, Massachusetts that received the $15 million investment from HHS to scale up its domestic production of shikimic acid.

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What’s next

The investment is expected to help address recurring Tamiflu shortages by reducing reliance on Chinese sources for the key raw material, shikimic acid.

The takeaway

This funding from HHS underscores the importance of building a more resilient domestic supply chain for critical medications like Tamiflu, which can face shortages during periods of high demand, such as severe flu seasons.