Federal contract market · NAICS 325412
Pharmaceutical Preparation Manufacturing (NAICS 325412): Federal Contract Market
Data through 2026-08-19 · FY2026 to date
- Obligations, FY2026 to date
- $11.9B
- Contract awards
- 13,579
- Average award size
- $875K
- vs. prior full fiscal year
- 9.2% decline
| Item | Obligations |
|---|---|
| FY21 | $19.5B |
| FY22 | $34.4B |
| FY23 | $12.8B |
| FY24 | $10.1B |
| FY25 | $13.1B |
| FY26 | $11.9B |
Obligations fell 9.2% year over year, from $13.1B in FY2025 to $11.9B in FY2026 to date.
Pharmaceutical Preparation Manufacturing (NAICS 325412) has recorded $11.9B in federal contract obligations for FY2026 to date. Award activity totals 13,579 awards with an average award size of $875K. Obligations are down 9.2% year over year. Fiscal-year history shows large swings: FY21 at $19.5B, FY22 at $34.4B, FY23 at $12.8B, FY24 at $10.1B, FY25 at $13.1B, and FY26 at $11.9B. The Department of Veterans Affairs is by far the largest buyer with $11.1B in obligations for FY2026 to date. The vendor landscape is concentrated, with MCKESSON CORPORATION receiving $11.1B in obligations for FY2026 to date and other leading suppliers including EMERGENT BIOSOLUTIONS CANADA INC at $118M, EXELAN PHARMACEUTICALS INC at $106M, and PHLOW CORP. at $105M. Note that the FY2026 totals are fiscal year to date and represent partial-year obligations.
How have obligations trended over recent fiscal years?
NAICS 325412 obligations rose to $34.4B in FY22 then fell to $12.8B in FY23. Obligations continued at $10.1B in FY24 and recovered to $13.1B in FY25 before reaching $11.9B for FY26 to date. The current-year total is a partial fiscal year figure. Overall, obligations are down 9.2% year over year.
| Item | Obligations |
|---|---|
| Department of Veterans Affairs | $11.1B |
| Department of Health and Human Services | $550M |
| Department of Justice | $172M |
| Department of Defense | $58.2M |
| Department of Homeland Security | $9.7M |
| Department of Agriculture | $727K |
| Peace Corps | $405K |
| Department of Commerce | $133K |
| Department of the Interior | $120K |
| Smithsonian Institution | $40.2K |
Department of Veterans Affairs was the top buyer, obligating $11.1B (93.3% of all obligations).
Who are the largest buyers and sellers right now?
The Department of Veterans Affairs obligated $11.1B for FY2026 to date. The Department of Health and Human Services obligated $550M and the Department of Justice obligated $172M for FY2026 to date. MCKESSON CORPORATION received $11.1B in obligations for FY2026 to date, followed by EMERGENT BIOSOLUTIONS CANADA INC at $118M and EXELAN PHARMACEUTICALS INC at $106M.
| Item | Obligations |
|---|---|
| MCKESSON CORPORATION | $11.1B |
| EMERGENT BIOSOLUTIONS CANADA INC | $118M |
| EXELAN PHARMACEUTICALS INC | $106M |
| PHLOW CORP. | $105M |
| BAVARIAN NORDIC A/S | $97M |
| DLA TROOP SUPPORT | $55.9M |
| MCKESSON SPECIALTY DISTRIBUTION LLC | $51.1M |
| PARTNER THERAPEUTICS, INC. | $50.2M |
| PROGENICS PHARMACEUTICALS INC | $36.9M |
| NOVARTIS PHARMACEUTICALS CORPORATION | $35.8M |
MCKESSON CORPORATION led all vendors with $11.1B in obligations, 93.1% of the market.
| Rank | Vendor | Obligations |
|---|---|---|
| 1 | MCKESSON CORPORATION | $11.1B |
| 2 | EMERGENT BIOSOLUTIONS CANADA INC | $118M |
| 3 | EXELAN PHARMACEUTICALS INC | $106M |
| 4 | PHLOW CORP. | $105M |
| 5 | BAVARIAN NORDIC A/S | $97M |
| 6 | DLA TROOP SUPPORT | $55.9M |
| 7 | MCKESSON SPECIALTY DISTRIBUTION LLC | $51.1M |
| 8 | PARTNER THERAPEUTICS, INC. | $50.2M |
| 9 | PROGENICS PHARMACEUTICALS INC | $36.9M |
| 10 | NOVARTIS PHARMACEUTICALS CORPORATION | $35.8M |
| Rank | Recipient | Award Amount | Awarding Agency |
|---|---|---|---|
| 1 | MCKESSON CORPORATION | $1.4B | Department of Veterans Affairs |
| 2 | MCKESSON CORPORATION | $1.4B | Department of Veterans Affairs |
| 3 | BAVARIAN NORDIC A/S | $1.3B | Department of Health and Human Services |
| 4 | MCKESSON CORPORATION | $1.2B | Department of Veterans Affairs |
| 5 | MCKESSON CORPORATION | $1.2B | Department of Veterans Affairs |
| 6 | MCKESSON CORPORATION | $1.2B | Department of Veterans Affairs |
| 7 | MCKESSON CORPORATION | $1.2B | Department of Veterans Affairs |
| 8 | MCKESSON CORPORATION | $1.1B | Department of Veterans Affairs |
| 9 | MCKESSON CORPORATION | $1.1B | Department of Veterans Affairs |
| 10 | MCKESSON CORPORATION | $1.1B | Department of Veterans Affairs |
| 11 | PHLOW CORP. | $697M | Department of Health and Human Services |
| 12 | EMERGENT BIOSOLUTIONS CANADA INC | $422M | Department of Health and Human Services |
| 13 | EMERGENT BIOSOLUTIONS CANADA INC | $321M | Department of Health and Human Services |
| 14 | MCKESSON SPECIALTY DISTRIBUTION LLC | $204M | Department of Health and Human Services |
| 15 | MERCK SHARP & DOHME LLC | $156M | Department of Health and Human Services |
| 16 | PARTNER THERAPEUTICS, INC. | $134M | Department of Health and Human Services |
| 17 | ELUSYS THERAPEUTICS INC | $125M | Department of Health and Human Services |
| 18 | CHARTWELL RX LLC | $99M | Department of Health and Human Services |
| 19 | CHARTWELL RX LLC | $98.7M | Department of Health and Human Services |
| 20 | DLA TROOP SUPPORT | $93.5M | Department of Health and Human Services |
| 21 | DLA TROOP SUPPORT | $65M | Department of Health and Human Services |
| 22 | CANGENE CORPORATION | $63.3M | Department of Health and Human Services |
| 23 | GENENTECH USA, INC | $45.1M | Department of Health and Human Services |
| 24 | GENENTECH USA, INC | $37.5M | Department of Health and Human Services |
| 25 | RAFA LABORATORIES LTD | $33.4M | Department of Health and Human Services |
| Rank | Contract | Incumbent | Award Value | Awarding Agency | Ends |
|---|---|---|---|---|---|
| 1 | 75A50120C00092 | PHLOW CORP. | $697M | Department of Health and Human Services | 2027-01-13 |
| 2 | 75A50119C00037 | EMERGENT BIOSOLUTIONS CANADA INC | $422M | Department of Health and Human Services | 2027-03-30 |
| 3 | 75A50119C00075 | EMERGENT BIOSOLUTIONS CANADA INC | $321M | Department of Health and Human Services | 2027-03-30 |
| 4 | 75A50325F80013 | ALVOGEN, INC. | $228M | Department of Health and Human Services | 2027-06-29 |
| 5 | 75D30123C17978 | MCKESSON SPECIALTY DISTRIBUTION LLC | $204M | Department of Health and Human Services | 2027-01-31 |
| 6 | 75A50323F80027 | PARTNER THERAPEUTICS, INC. | $134M | Department of Health and Human Services | 2027-03-29 |
| 7 | 75A50325F80009 | CHARTWELL RX LLC | $98.7M | Department of Health and Human Services | 2027-01-04 |
| 8 | 75A50324C00015 | MERIDIAN MEDICAL TECHNOLOGIES, LLC | $82.2M | Department of Health and Human Services | 2026-09-29 |
| 9 | 75A50325F80014 | EXELAN PHARMACEUTICALS INC | $74.1M | Department of Health and Human Services | 2027-06-29 |
| 10 | 75N98026C00026 | DLA TROOP SUPPORT | $65M | Department of Health and Human Services | 2027-04-09 |
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Frequently asked questions
How much does the federal government spend on NAICS 325412?
The federal government has obligated $11.9B to NAICS 325412 for FY2026 to date. Fiscal-year obligations have varied widely in recent years: FY21 $19.5B, FY22 $34.4B, FY23 $12.8B, FY24 $10.1B, FY25 $13.1B, and FY26 $11.9B. Current-year totals are partial and reported fiscal year to date.
Which agencies buy the most NAICS 325412 services?
The Department of Veterans Affairs buys the most NAICS 325412 services, with $11.1B in obligations for FY2026 to date. The Department of Health and Human Services obligated $550M and the Department of Justice obligated $172M for FY2026 to date. Other buying agencies include the Department of Defense at $58.2M and the Department of Homeland Security at $9.7M.
Who are the largest NAICS 325412 government contractors?
MCKESSON CORPORATION is the largest government contractor in NAICS 325412, receiving $11.1B in obligations for FY2026 to date. Other top vendors for FY2026 to date include EMERGENT BIOSOLUTIONS CANADA INC at $118M, EXELAN PHARMACEUTICALS INC at $106M, and PHLOW CORP. at $105M.
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