Biogen Announces $2 Billion Investment in U.S. Manufacturing Amid Tariff Concerns

Biogen, a leading biotechnology company, has unveiled plans for a substantial $2 billion investment to expand its drug production capabilities in North Carolina. This move comes as pharmaceutical companies face increasing pressure to bolster their U.S. manufacturing presence in response to potential tariffs on imported drugs.

Expansion of North Carolina Facilities

The investment will focus on enhancing Biogen's antisense oligonucleotide capabilities and infrastructure across its two campuses in Research Triangle Park (RTP). The company aims to establish multi-platform fill-finish capabilities at both clinical and commercial scales, while also modernizing its manufacturing technologies through advanced automation and artificial intelligence.

Biogen's commitment to North Carolina is longstanding, with the company having invested $10 billion in drug production in the state since breaking ground in 1995. The biotech giant currently employs 1,500 manufacturing and technical workers across its two RTP campuses.

New Facility and Product Manufacturing

Biogen is set to open its eighth plant in RTP later this year, a 197,000-square-foot facility representing an investment of approximately $195 million. Initially designed for gene therapy production and clinical packaging, the company is now evaluating alternative uses for the facility following a shift in its gene therapy focus.

The company's existing RTP facilities currently produce several key drugs, including Avonex, Plegridy, Tysabri, and the recently approved ALS therapy Qalsody. Spinraza is slated to join the list of products manufactured at the oligonucleotide facility this year. However, some of Biogen's products, such as Leqembi and Tysabri, are still produced at its large-scale biologics facility in Switzerland, potentially exposing them to future tariffs.

Industry-Wide Response to Tariff Threats

Biogen's investment announcement aligns with a broader trend in the pharmaceutical industry, as companies respond to the ongoing threat of tariffs from the Trump administration. President Donald Trump has recently threatened to impose tariffs of up to 200% on pharmaceutical imports, with a potential implementation date as early as August 1, 2025.

This move has prompted several leading drugmakers to commit to expanding their U.S. manufacturing capabilities. However, industry leaders, including Novartis, have cautioned that the process of reshoring manufacturing operations could take three to four years to complete.

North Carolina has emerged as a primary beneficiary of these industry shifts, with other major pharmaceutical companies such as Johnson & Johnson, Merck, Regeneron, and Roche also outlining plans to invest in the state.