Big Pharma Commits Billions to US Manufacturing Amid Tariff Concerns

In a significant shift for the pharmaceutical industry, several major players have announced substantial investments in US manufacturing capabilities. These moves come as the Trump administration continues to threaten sector-specific tariffs, prompting companies to bolster their domestic production to mitigate potential risks.

Roche's $50 Billion US Expansion

Swiss pharmaceutical giant Roche has pledged a staggering $50 billion investment over five years to enhance its US presence. The company's ambitious plans include:

• Construction of a new gene therapy plant in Pennsylvania
• Establishment of an AI-focused R&D center in Massachusetts
• Development of a new manufacturing site in Indiana for continuous glucose monitoring products
• Creation of a 900,000-square-foot production plant for next-generation weight loss products

Roche CEO Thomas Schinecker emphasized the company's commitment to the US market, stating, "Today's announced investments underscore our long-standing commitment to research, development and manufacturing in the U.S."

The expansion is expected to create over 12,000 new positions, including 6,500 construction jobs. Notably, Roche projects that these investments will enable the company to export more medicines from the US than it imports, mirroring its current position in diagnostics.

Regeneron's $3 Billion Manufacturing Boost

Regeneron Pharmaceuticals has inked a $3 billion manufacturing deal with Fujifilm Diosynth Biotechnologies, aimed at nearly doubling its large-scale manufacturing capacity in the US. The partnership will leverage Fujifilm's new biopharmaceutical facility in North Carolina, supporting high-paying jobs in the region.

This expansion builds on Regeneron's recent growth, with the company adding approximately 7,000 jobs in the US over the past five years. Additionally, Regeneron is expanding its campus in Tarrytown, New York, with plans to create roughly 1,000 new full-time positions.

Industry-Wide Trend of US Investment

Roche and Regeneron's announcements are part of a broader industry trend, with several other pharmaceutical companies making similar commitments:

• Eli Lilly announced a $27 billion investment in February, planning four new production plants over five years and creating 3,000 new jobs.
• Johnson & Johnson unveiled a $55 billion manufacturing and R&D package in March, funding three new production facilities and expanding existing sites.
• Novartis committed $23 billion to construct a research innovation hub in California and six new manufacturing plants, including two dedicated to radioligand therapies.

These investments collectively represent over $160 billion in commitments to US drug production from major pharmaceutical companies in recent months.