AbbVie Unveils $10B U.S. Investment Plan Amid Potential Pharmaceutical Tariffs

AbbVie, the Chicago-based pharmaceutical giant, has announced a significant $10 billion investment plan in the United States, set to unfold over the next decade. The move comes as the pharmaceutical industry braces for potential sector-specific tariffs, highlighting a growing trend of domestic investment among major drug manufacturers.

AbbVie's Strategic U.S. Expansion

AbbVie CEO Rob Michael revealed the company's intentions to invest $10 billion in the U.S. through 2035 during a recent call with analysts. This substantial commitment aims to support AbbVie's current growth trajectory and facilitate expansion into new therapeutic areas, including obesity.

The investment plan encompasses the construction of four new U.S. production facilities, focusing on active pharmaceutical ingredients (API), drug products, peptides, and medical devices. This expansion builds upon AbbVie's existing U.S. manufacturing presence, which currently employs 6,000 workers across 11 sites.

Industry-Wide Response to Tariff Concerns

AbbVie's announcement aligns with a broader industry trend, as pharmaceutical companies prepare for potential import duties under the current administration's trade policies. While pharmaceuticals were initially exempt from recent tariffs, ongoing investigations into drug imports suggest that the sector may soon face its own set of levies.

In response to these looming challenges, several major players in the pharmaceutical industry have unveiled significant U.S. investment plans:

• Thermo Fisher, Regeneron, and Roche have recently announced substantial investments in their U.S. operations.
• Novartis, Eli Lilly, and Johnson & Johnson have pledged between $23 billion and $55 billion in domestic investments.

These strategic moves reflect the industry's efforts to mitigate potential tariff impacts and strengthen their U.S. manufacturing capabilities.

Financial Performance and Future Outlook

Amid these developments, AbbVie reported strong financial results for the first quarter of 2025. The company's revenues reached $13.34 billion, marking an 8.4% increase year-over-year and surpassing Wall Street estimates of $12.9 billion.

Key highlights from AbbVie's financial report include:

• Immunology sales continue to lead, with Skyrizi generating approximately $3.43 billion in the quarter.
• Rinvoq sales grew by 57% to $1.7 billion.
• Humira, facing biosimilar competition, experienced a 50% sales decline to $1.12 billion, now comprising just 8% of AbbVie's total revenue.

Based on these results, AbbVie has raised its full-year sales guidance to $59.7 billion, a $700 million increase from previous forecasts. The company attributes this adjustment to updated predictions for key drugs, including Skyrizi, Rinvoq, and lower Humira sales.

As the pharmaceutical landscape continues to evolve, AbbVie's significant U.S. investment plan and strong financial performance position the company to navigate potential tariff challenges while pursuing growth opportunities in the domestic market.