Key facts
- Global drugmakers are investing billions of dollars to expand U.S. manufacturing and research operations.
- Companies like Pfizer, Eli Lilly, AstraZeneca, and Roche are among those making significant commitments.
- Investments aim to strengthen infrastructure, mitigate supply-chain risks, and address potential tariffs.
- Pfizer secured a three-year grace period from pharmaceutical-targeted tariffs as part of a $70 billion investment deal.
- Total announced investments from these companies exceed hundreds of billions of dollars.
Global pharmaceutical companies are significantly expanding their manufacturing and research and development capabilities within the United States, collectively pledging billions of dollars. This surge in investment is driven by a desire to strengthen domestic infrastructure, mitigate risks associated with global supply chains, and potentially preemptively address tariff concerns.
Companies such as Pfizer, Eli Lilly, AstraZeneca, and Roche are at the forefront of this expansion. Pfizer, for instance, reached an agreement with President Donald Trump to invest $70 billion in U.S. research and development and domestic manufacturing, securing a three-year exemption from pharmaceutical-targeted tariffs. GSK plans to invest $30 billion over five years in U.S. research and supply chain infrastructure.
Eli Lilly has announced plans to build multiple new plants in the U.S., including a $3.5 billion facility in Pennsylvania, as part of a broader effort to expand production and bolster medical supply chains. Johnson & Johnson intends to raise its U.S. investments by 25% to $55 billion over the next four years, with plans for new plants. Roche is investing $50 billion in the U.S. over five years, with an additional $550 million allocated for its Indianapolis diagnostics manufacturing hub.
AstraZeneca will invest $50 billion in U.S. manufacturing by 2030, including a major new drug substance facility in Virginia. Novartis plans to spend $23 billion to build and expand 10 facilities in the U.S. over five years, creating over 1,000 jobs. Sanofi aims to invest at least $20 billion through 2030 to boost its U.S. manufacturing and research capacity.
Other major players include Biogen, which will invest an additional $2 billion in its North Carolina plants; Merck, building a $3 billion plant in Virginia and a $1 billion facility in Delaware; and Amgen, expanding its Ohio facility with a $900 million investment and investing $600 million in a California R&D center. AbbVie has committed $100 billion over the next decade to U.S. R&D and plans to invest $380 million in new Illinois facilities. Gilead Sciences announced $11 billion in new planned U.S. investment, bringing its total to $32 billion, and Bristol Myers Squibb will invest $2.3 billion in a new Texas manufacturing facility.
Several companies, including Sanofi, Merck, and AbbVie, have indicated that potential tariffs are expected to have a limited impact in 2025 due to existing inventory and U.S.-based operations. Novo Nordisk also noted its strong U.S. manufacturing footprint positions it well for tariff challenges.