In today’s Finshots, we tell you why the US’ plasma exports are on the rise.

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With that out of the way, let’s get on to today’s story.

The Story

Have you ever wondered why doctors are quick to order blood tests when you’re feeling sick?

It’s because your blood is a treasure trove of information. One drop alone holds thousands of molecules. And if you break it down, your blood separates into four main parts—red cells, white cells, platelets, and plasma.

And here’s the thing. One of these parts doesn’t just save lives. It powers economies and drives global trade. And all of a sudden, this liquid is stirring up conversations in the US. Okay, maybe ‘sudden’ isn’t the right word. It’s more about the soaring demand and looming shortages that are driving this buzz.

If you still haven’t guessed what we’re talking about, it’s plasma! This yellowish liquid makes up about half your blood and is packed with proteins and antibodies. The world is in desperate need for more of it. And guess what? The US is a major player in this field.

In fact, America isn’t just a leader, it’s the largest exporter of plasma. It supplies about 70% of the world’s plasma needs. To give you some context, in 2023 alone, the US pulled in a staggering $37 billion from blood product exports. And while this figure is just about 2% of all US exported goods that year, it’s still more than what the country made from coal or gold exports.

So, as the global demand for plasma grows, the pressure is on for the US to keep extracting and exporting more of it.

Now, before we get ahead of ourselves, it’s important to understand how the US got here.

You see, the plasma industry relies heavily on just a few countries to supply it. It’s because donating plasma isn’t just as simple as giving blood.

While blood donation is often seen as a noble, life-saving act, the idea of paying people to donate plasma raises ethical eyebrows. Some countries consider it morally inappropriate to pay for a bodily fluid. Others worry that offering money for plasma could attract people from economically disadvantaged backgrounds who might be more vulnerable to diseases, making the process riskier. And some are just plain spooked by the whole idea.

Take the UK, for instance. Back in 1998, the country banned plasma donations over fears of spreading the ‘Creutzfeldt-Jakob Disease’, also known as the ‘mad cow disease’. So, what did they do? Instead of relying on homegrown plasma, the UK started importing it, and even set up its own plasma collection centres in… you guessed it… the US! And while they lifted the ban recently in 2021, their reliance on imports hasn’t fully gone away.

And it’s not just the UK. Strict regulations and restrictions across the globe have created a plasma shortage. And this has forced many countries to rely on imports to meet their medical needs. That explains why only five countries – like the US, Germany, Austria, Hungary, and the Czech Republic – actually allow payment for plasma donations.

But things weren’t always this way.

In the early days of the HIV/AIDS crisis, the US imposed strict rules on who could donate blood and plasma, especially men who had sex with men, in an effort to curb the spread of the virus.

But then the pandemic flipped everything upside down. With an acute shortage of blood in US blood banks, the US FDA (Food and Drug Administration) had to change its laws in 2023 and open up the possibility for more people to donate and get paid for plasma donations.

But here’s the thing. There’s still no standard rate for plasma donations. The industry is largely controlled by private companies, many of which aren’t even US-based. Companies like Australia’s CSL Plasma, Japan’s Biolife (owned by Takeda), Spain’s Grifols, and Switzerland’s Octapharma pretty much dominate the US market.

The irony? These countries either have a ban on paying for plasma donations or have strict limits on how often someone can donate. So, they’ve turned to the US to build their plasma empires.

And this dynamic has quietly turned the US plasma trade into a big deal for the economy. For some Americans, especially those from economically disadvantaged backgrounds, donating plasma has become a vital source of income. To put things into perspective, about 12% of Americans were living in poverty in 2022. That’s a 5% increase from the year before. Studies have even shown a decrease in salary linked loans and an increase in foot traffic to nearby stores in areas where plasma donation centres have popped up. Heck, even people from Mexico cross the border to donate plasma and make some extra cash.

But it’s not just about making money.

Because demand for plasma is also being driven by the rise of plasma-derived medicinal products (PDMDs). These products are used to treat a bunch of rare diseases, which have been on the rise. One key ingredient, immunoglobulin, is an essential substance derived from plasma and it plays a crucial role in helping patients with weak immune systems. And the market for it has been growing steadily for the past 25 years, with no signs of slowing down.

But here’s the problem. The World Health Organization (WHO) says that there still isn’t enough plasma to meet the growing needs of the pharmaceutical industry. More than half of the countries it surveyed import plasma because they can’t meet their own demand with just voluntary donations.

That’s why this global plasma shortage has put a lot of pressure on a handful of countries like the US to crank up production. And because the body replaces plasma proteins and fluids within 24 to 48 hours, donating plasma is considered relatively safe. So donors can give plasma more frequently than whole blood. That’s why private plasma centres in the US often allow people to donate twice a week on average.

But there’s a catch. The long-term effects of such frequent plasma donations on a person’s health aren’t fully researched and understood yet.

And every time a shortage of PDMDs arises, the same ethical question comes up ― Is it right to pay someone for their blood?

It’s a debate that straddles the line between societal taboo and economic necessity. But the reality is that many countries are quietly depending on paid plasma donations. And they’re outsourcing it to just a few economies, like the US, which is using it as a way to fuel its own growth.

So yeah, it’s a dilemma that shows just how complex (and sometimes hypocritical) the global plasma industry really is. But as long as the demand for plasma-derived medicines keeps rising, so will the US’ role as the world’s plasma powerhouse.

Until next time…

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