UCB Plans Major US Biologics Manufacturing Investment, Signaling Industry Trend

Belgium-based pharmaceutical company UCB has announced plans to establish a new state-of-the-art biologics manufacturing facility in the United States, marking a significant expansion of its global production capabilities. The move comes amid a broader trend of pharmaceutical companies increasing their US manufacturing footprint, driven in part by political pressures and market growth opportunities.

Investment Details and Economic Impact

UCB's planned facility, while not yet sited, is expected to create 300 high-skilled jobs upon completion. The company has not disclosed the exact investment figure but estimates the total economic impact of the expansion to be approximately $5 billion. This substantial commitment underscores UCB's confidence in the US market and its dedication to strengthening its presence in one of its fastest-growing regions.

Jean-Christophe Tellier, CEO of UCB, emphasized the strategic importance of this move, stating, "This investment reflects our growing impact in the US and our ambition to bring our forthcoming pipeline to patients around the world. By expanding our biologics manufacturing footprint, we're not only reinforcing our global supply chain—we're also contributing to the vitality of biomedical innovation, high-skilled jobs, and long-term economic impact in the US."

Industry Context and Market Dynamics

UCB's decision to expand its US manufacturing capabilities aligns with a broader industry trend. Recent months have seen several major pharmaceutical companies, including Johnson & Johnson, Roche, Eli Lilly, and Novartis, pledge investments totaling over $150 billion in US operations. These moves come in response to threats of pharmaceutical tariffs from the Trump administration and a growing emphasis on domestic production.

The Belgian company's expansion plans are backed by strong recent performance, with UCB reporting a 19% revenue increase last year to 6.15 billion euros. This growth has been fueled by several FDA approvals and label expansions, including those for its potential blockbuster drug, Bimzelx. UCB's US workforce has already grown by 73% since 2017, with the company currently employing about 2,000 people in the country.

Strategic Considerations and Future Outlook

As UCB evaluates potential locations for its new facility, the company is prioritizing regions with strong talent pipelines and innovation ecosystems. This focus aligns with the broader industry trend of establishing manufacturing hubs in areas with robust biotech and pharmaceutical infrastructures.

In addition to its internal manufacturing expansion, UCB plans to continue scaling up its contract manufacturing partnerships to support its growth drivers. This dual approach of in-house capacity building and external collaborations reflects the company's strategy to enhance supply chain resilience and sustainability in an increasingly competitive global market.