Drugmakers Accelerate US Expansion: What the Tariff Threat Means for Your Investment Strategy
Global pharmaceutical companies are significantly increasing their manufacturing capacities and stockpiling inventory in the United States amid the Trump administration’s consideration of imposing a 100% tariff on imported branded and patented medicines.
While tariff enforcement is deferred for companies investing in domestic manufacturing, this policy has already accelerated project timelines, prompted price reductions, and encouraged direct-to-consumer sales strategies.
Several leading drugmakers have secured multi-year tariff exemptions through pricing agreements and commitments to the administration’s TrumpRx.gov platform. Companies such as Eli Lilly, Johnson & Johnson, and Merck have pledged billions of dollars to expand their US operations, aiming to avoid penalties.
Here is a summary of the key actions by major pharmaceutical firms to mitigate supply chain risks and provide investor reassurance:
Pfizer reached a deal with President Donald Trump on September 30 to invest $70 billion in US research, development, and manufacturing. In return, Pfizer received a three-year exemption from pharmaceutical tariffs.
GlaxoSmithKline (GSK) plans to invest $30 billion over five years in US-based research and development and supply chain infrastructure.
Eli Lilly is committing at least $27 billion to establish four manufacturing plants across Alabama, Virginia, and Texas, to strengthen medical supply chains.
Johnson & Johnson will increase its US investments by 25%, totaling $55 billion over the next four years. This includes constructing four plants, with confirmed locations in Wilson, North Carolina, and at Fujifilm Biotechnologies’ facility in Holly Springs, North Carolina.
Roche announced a $50 billion US investment over five years, with an additional $550 million allocated to expand its diagnostic manufacturing hub in Indianapolis. The company is also more than doubling its investment to about $2 billion at its drug manufacturing site in Holly Springs, North Carolina.
AstraZeneca commits $50 billion by 2030 to US manufacturing, including a major new drug substance facility in Virginia—its largest single-site global investment—alongside expansions in Maryland, Massachusetts, California, Indiana, and Texas.
Novartis plans $23 billion over five years to build and expand ten US facilities, including six new manufacturing plants and an expanded R&D site in San Diego expected to create over 1,000 jobs.
Sanofi aims to invest at least $20 billion through 2030 to boost US manufacturing and research, increasing capacity via direct investments and partnerships with domestic manufacturers.
Biogen will invest an additional $2 billion to expand its North Carolina manufacturing plants, focusing on gene-targeting therapies and automation. The company operates seven facilities in the state, with an eighth scheduled to open in late 2025.
Merck has begun constructing a $3 billion pharmaceutical plant in Virginia as part of a $70 billion-plus investment to expand domestic manufacturing and research. It will also invest $1 billion in a Delaware plant to produce biologics and cancer drug Keytruda, potentially creating over 4,500 jobs. Additionally, Merck opened a $1 billion facility in North Carolina in March and plans $895 million in investments at its Kansas manufacturing and R&D site through 2028.
Amgen plans to invest $900 million to expand its Ohio manufacturing facility, raising total investments in the state to $1.4 billion and adding 750 jobs. It also committed $1 billion to build a second facility in Holly Springs, North Carolina, and over $600 million to develop a new R&D center in Thousand Oaks, California. Furthermore, Amgen is investing $650 million to expand manufacturing in Juncos, Puerto Rico, expected to create nearly 750 jobs.
Novo Nordisk emphasized its strong US manufacturing presence in August, describing itself as “very US-centric and US-focused,” positioning itself well for tariff challenges.
AbbVie committed $100 billion over the next decade to US-based research and development as part of a three-year agreement with the Trump administration aimed at lowering drug prices. With 11 US manufacturing sites, AbbVie considers itself largely insulated from tariff impacts due to strategic inventory management.
Gilead Sciences announced $11 billion in new US investments earlier this year, bringing its total pledged investment to $32 billion. The company has begun work on a pharmaceutical development and manufacturing hub in Foster City, California, and is developing two additional sites.
Cipla, an Indian pharmaceutical company, is expanding its US manufacturing capacity for complex respiratory products at its advanced facilities in Fall River, Massachusetts, and Central Islip, New York.
CSL, an Australian firm, plans to invest $1.5 billion over the next five years to manufacture plasma-derived therapies, increasing its US footprint.
These substantial commitments signal a robust reshaping of the pharmaceutical manufacturing landscape in the United States driven by evolving trade policies and a strategic focus on domestic production.
Special Analysis by Omanet | Navigate Oman’s Market
The significant increase in US pharmaceutical manufacturing investments driven by tariff threats presents both risks and opportunities for Omani businesses. With global drugmakers prioritizing domestic production, Oman-based pharmaceutical exporters could face heightened competition and supply chain disruptions. However, smart investors and entrepreneurs in Oman should consider diversifying into value-added services or niche pharmaceutical markets less vulnerable to US-centric policies, while exploring partnerships to stay integrated in global supply chains.
