Cannot select value in select when using onChange event

I have the select box, wrapped in a customized component. The values bind correctly, and I can select them fine. But when I add the onChange event, which triggers just fine and the localStorage does get set, no value is selected in the drop down list. What am I missing here?

  const [selectedDrug, setSelectedDrug] = useState('');

  const handleChange = event => {
    localStorage.setItem("drugName", event.target.value);
    setSelectedDrug(event.target.value);
  };

                    <div className="provider-and-site-selector-container">
                      <SRFormFieldSelectProductName
                        name={resolveFullName("productName")}
                        label={"Product Name*"}
                        value={selectedDrug}
                        onChange={handleChange}
                        validate={Validators.required}
                      />
                    </div>