Federal contract market · NAICS 325412
Pharmaceutical Preparation Manufacturing (NAICS 325412): Federal Contract Market
Data through 2026-08-24 · FY2026 to date
- Obligations, FY2026 to date
- $11.9B
- Contract awards
- 13,935
- Average award size
- $855K
- vs. prior full fiscal year
- 9.0% decline
| Item | Obligations |
|---|---|
| FY21 | $19.5B |
| FY22 | $34.4B |
| FY23 | $12.8B |
| FY24 | $10.1B |
| FY25 | $13.1B |
| FY26 | $11.9B |
Obligations fell 9.0% year over year, from $13.1B in FY2025 to $11.9B in FY2026 to date.
Pharmaceutical Preparation Manufacturing (NAICS 325412) registered $11.9B in federal contract obligations in FY2026 to date. The market recorded 13,935 awards and an average award size of $855K. Obligations fell 9.0% year over year. The Department of Veterans Affairs is the dominant buyer with $11.1B in obligations, leaving other agencies to share the remaining federal spend. McKesson Corporation is the dominant supplier with $11.1B in obligations, followed by several specialty vendors that each account for tens to low hundreds of millions in award value. Historical fiscal-year obligations show wide swings: FY21 was $19.5B, FY22 was $34.4B, FY23 was $12.8B, FY24 was $10.1B, and FY25 was $13.1B. Current-year totals are partial because figures are fiscal year to date. This market remains concentrated on a few large buyers and a small set of high-dollar vendors, with the Department of Veterans Affairs and McKesson Corporation accounting for the largest shares of FY2026 to date obligations.
How concentrated is federal buying in NAICS 325412?
The Department of Veterans Affairs obligated $11.1B in FY2026 to date, driving most of the sector's spending. The Department of Health and Human Services is the next-largest buyer with $574M, followed by smaller commitments from agencies such as the Department of Justice with $174M and the Department of Defense with $58.5M. This buyer mix makes the market heavily weighted toward a single agency.
| Item | Obligations |
|---|---|
| Department of Veterans Affairs | $11.1B |
| Department of Health and Human Services | $574M |
| Department of Justice | $174M |
| Department of Defense | $58.5M |
| Department of Homeland Security | $9.7M |
| Department of Agriculture | $991K |
| 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 (93.1% of all obligations).
Who captures the largest share of contract dollars in NAICS 325412?
MCKESSON CORPORATION received $11.1B in FY2026 to date, making the company the largest vendor by far. EMERGENT BIOSOLUTIONS CANADA INC, EXELAN PHARMACEUTICALS INC, and PHLOW CORP. each received between $105M and $118M, with other top vendors receiving tens of millions. A small group of vendors therefore captures most of the obligations.
| 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 | $37.5M |
| NOVARTIS PHARMACEUTICALS CORPORATION | $36M |
MCKESSON CORPORATION led all vendors with $11.1B in obligations, 92.9% 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 | $37.5M |
| 10 | NOVARTIS PHARMACEUTICALS CORPORATION | $36M |
| 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?
Total federal obligations are $11.9B in FY2026 to date. The market recorded 13,935 awards, an average award size of $855K, and obligations fell 9.0% year over year. Current-year totals are partial because figures are fiscal year to date.
Which agencies buy the most NAICS 325412 services?
The Department of Veterans Affairs is the largest buyer at $11.1B in FY2026 to date. The Department of Health and Human Services follows with $574M, then the Department of Justice with $174M and the Department of Defense with $58.5M. Other agencies each account for much smaller sums.
Who are the largest NAICS 325412 government contractors?
MCKESSON CORPORATION is the largest contractor at $11.1B in FY2026 to date. EMERGENT BIOSOLUTIONS CANADA INC, EXELAN PHARMACEUTICALS INC, and PHLOW CORP. are the next-largest vendors with $118M, $106M, and $105M respectively, and several other vendors received mid- to low-seven-figure to low-eight-figure obligations.
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