Key facts
- Bayer plans to invest $2.2 billion in a new pharmaceutical manufacturing site in New Albany, Ohio.
Bayer's pharmaceuticals unit plans to invest $2.2 billion in a new manufacturing site in New Albany, Ohio, aiming to boost US revenue and create approximately 600 jobs. The expansion is supported by key drugs like Kerendia and Nubeqa, and a drug candidate for stroke prevention.
The investment underscores Bayer's strategy to capitalize on the higher pricing of prescription drugs in the US market and expand its global revenue share, while also navigating political pressure to lower drug costs.
Bayer's pharmaceuticals division announced on Friday plans for a significant investment of $2.2 billion to establish a new manufacturing facility in New Albany, Ohio. This strategic move is part of the company's broader initiative to increase its revenue generated within the United States.
The new facility is projected to create approximately 600 high-paying jobs, in addition to an estimated 1,500 temporary positions during the construction phase. Sebastian Guth, chief operating officer for pharmaceuticals at Bayer, stated that the decision to strengthen the company's presence in the US is deliberate, complementing its existing strong operations in Europe and Asia.
The expansion is expected to be driven by the performance of key products such as Kerendia for chronic kidney disease, the prostate cancer drug Nubeqa, and the stroke prevention drug candidate asundexian. Bayer aims to double its US sales by the end of the current decade. The company noted that US prescription medicine prices are considerably higher than in other developed nations, a factor that has led President Donald Trump to pressure drugmakers for price reductions.
The drug substance manufacturing site is anticipated to become operational in 2031, with a facility for finished drug products to follow in 2034.
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