Merck Eyes Delaware for $900M Commercialization and Launch Facility

Pharmaceutical giant Merck & Co. is considering Delaware as the potential site for a new $900 million commercialization and launch facility, bolstered by a substantial grant commitment from the state. The development could bring significant investment and job creation to the region, marking a major win for Delaware's efforts to attract big pharma operations.

Delaware Offers $30.2M Grant to Entice Merck

On Monday, Delaware's state investment board approved a $30.2 million grant to Merck, contingent on the company's decision to establish operations at the Chestnut Run Innovation & Science Park outside Wilmington. The proposed facility, if built, would create approximately 375 new jobs and represent a significant expansion of Merck's presence in the state.

Timothy Keppel, Merck's executive director of manufacturing network strategy, addressed Delaware's Council on Development Finance, stating, "We are in the final stages of decision making. This has been a competitive process, and [we] started with no limitations around the globe."

Proposed Facility Details and Timeline

The planned 450,000-square-foot facility would include multiple buildings, labs, warehouses, and production space. Merck estimates that the site could be operational by 2030, representing a long-term commitment to the region. The company's interest in Delaware is partly driven by the state's growing biologics talent pool, according to Keppel.

If Merck selects Delaware, this would mark the company's first human drugs facility in the state, complementing its existing animal health division operations in Millsboro, Delaware.

Delaware's Strategy to Attract Biopharma Investment

The grant offer to Merck is part of Delaware's broader strategy to attract pharmaceutical and biotechnology companies to the state. In 2021, Delaware awarded a $19 million grant to STA Pharmaceuticals, the U.S. affiliate of China's WuXi AppTec, to support the construction of a large manufacturing campus in Middletown.

The Delaware Prosperity Partnership, an economic development organization working on behalf of the state, confirmed the grant's approval to Merck. This latest grant represents the largest business investment by Delaware in over a decade, surpassing the previous record set by the STA Pharmaceuticals deal.