Key facts
- Drugmakers are increasing US manufacturing and stockpiling inventory due to potential 100% tariffs.
- Companies are securing tariff exemptions through pricing deals and a dedicated platform.
- Major pharmaceutical companies have announced billions in U.S. investments to expand manufacturing and R&D.
- Pfizer secured a three-year grace period from tariffs with a $70 billion investment deal.
- Investments range from billions to tens of billions from companies like GSK, Eli Lilly, J&J, Roche, AstraZeneca, Novartis, Sanofi, Merck, Amgen, AbbVie, and Gilead.
Global drugmakers are significantly increasing their investments in U.S. operations, pledging billions of dollars to expand manufacturing capacity and research and development. This strategic shift is driven by the threat of potential 100% tariffs on branded drugs by the Trump administration, prompting companies to bolster their domestic infrastructure and secure supply chains.
Companies are also actively seeking tariff exemptions through pricing agreements and a dedicated platform. Pfizer, for instance, secured a three-year grace period from tariffs by agreeing to invest $70 billion in U.S. research and domestic manufacturing.
Other major pharmaceutical firms are making substantial commitments. GSK plans to invest $30 billion in U.S. R&D and infrastructure over five years. Eli Lilly intends to build six new plants in the United States, with planned spending of at least $27 billion. Johnson & Johnson is raising its U.S. investments by 25% to $55 billion over four years.
Roche announced a $50 billion investment in the U.S. over five years, alongside an additional $550 million for diagnostics manufacturing. AstraZeneca will invest $50 billion on U.S. manufacturing by 2030, including a new drug substance facility in Virginia. Novartis plans to spend $23 billion on building and expanding 10 facilities in the U.S. over five years.
Sanofi aims to invest at least $20 billion in the U.S. through 2030 to boost manufacturing and research. Merck is constructing a $3 billion pharmaceutical manufacturing plant in Virginia as part of over $70 billion in domestic investment, with additional investments in Delaware and North Carolina. Amgen is expanding its Ohio manufacturing facility with a $900 million investment, bringing its total in the state to $1.4 billion, and has other U.S. expansion plans.
AbbVie has committed $100 billion to U.S.-based R&D over the next decade. Gilead Sciences announced $11 billion in new planned U.S. investment, adding to its existing $32 billion total pledged. Cipla is expanding its U.S. manufacturing capacity for respiratory products, and Australia's CSL is investing $1.5 billion in U.S. plasma therapy manufacturing.