Merck & Co. opens a $1 billion manufacturing facility in Durham, North Carolina, enhancing U.S. production capabilities.
Pharmaceutical companies are increasing domestic manufacturing in response to U.S. government policies aimed at reducing foreign dependency.
Merck & Co. has opened a $1 billion manufacturing facility in Durham, North Carolina, becoming the latest Big Pharma company to enhance its U.S. production capabilities in response to White House policies and concerns over supply chain security.
$20B spend-up: Merck’s new 225,000-square-foot state-of-the-art plant is equipped with advanced technologies, including data analytics, generative AI, and 3D printing, aiming to streamline production processes and training protocols. This expansion is part of a broader commitment to bolster its U.S. manufacturing and research and development infrastructure. Since 2018, the company has invested over $12 billion in U.S. capital projects, it says, and has plans to spend an additional $8 billion by 2028.
Responding to tariff threat: The investment aligns with a growing trend among pharmaceutical companies to strengthen domestic manufacturing capabilities. This shift is influenced by the U.S. government’s emphasis on reducing dependency on foreign production and mitigating potential supply chain disruptions. President Donald Trump’s administration has advocated for increased domestic manufacturing, proposing measures such as a 25% tariff on pharmaceutical imports to encourage this transition.
Big Pharma’s big plans: In response to these policy directions, several pharmaceutical giants have announced substantial investments in U.S. manufacturing:
Eli Lilly & Co. plans to invest $27 billion in constructing four new manufacturing plants across the United States.
GSK (GlaxoSmithKline) has announced an investment of up to $800 million to expand its manufacturing site in Marietta, Pennsylvania.
Novo Nordisk is investing $4.1 billion to expand its production facilities in North Carolina.
Pfizer, meanwhile, has said it is considering relocating its overseas manufacturing operations to existing facilities within the U.S. in response to the tariff threat.
