**North Carolina**: Merck & Co. has launched a $1 billion manufacturing facility in North Carolina, reinforcing a trend of U.S. drugmakers boosting domestic production amidst governmental pressures, including potential tariffs on pharmaceutical imports, as part of a broader push for national manufacturing capabilities.
Merck & Co. has announced the opening of a significant $1 billion manufacturing facility at its site in North Carolina, marking a substantial investment in the U.S. pharmaceutical sector. The announcement was made on Tuesday, reinforcing the trend of major drugmakers increasing their domestic production capabilities in response to ongoing pressure from the U.S. government.
President Donald Trump has been vocal in his campaign to encourage pharmaceutical companies to shift production back to the United States, especially since taking office. His administration has consistently threatened to impose a 25% tariff on pharmaceutical imports, aiming to incentivise companies to establish manufacturing operations on American soil. This push has led to discussions between Trump and the CEOs of leading pharmaceutical firms concerning various industry issues, including tariff implications.
In recent months, several companies have responded to these pressures. Eli Lilly has declared plans to invest at least $27 billion in the establishment of four new manufacturing plants within the U.S. Pfizer has hinted at relocating certain aspects of its overseas manufacturing to its existing facilities in America. Merck itself anticipates investing a total of $8 billion in the U.S. by 2028, having already committed more than $12 billion since 2018 to enhance its domestic manufacturing, research, and development capabilities while also focusing on job creation.
During a conference earlier this month, Merck’s Chief Financial Officer Caroline Litchfield addressed the company’s strategic approach amidst the uncertainty surrounding potential tariffs. “As we all try to understand what tariffs may come, our company is focused on the investments that we’re making in this country to support our pipeline,” Litchfield stated, highlighting the company’s commitment to strengthen its presence in the U.S. Despite the increasing domestic focus, Litchfield noted that Merck’s manufacturing footprint remains larger outside of the U.S., with facilities located in countries such as Ireland and Singapore.
The broader industry landscape reflects similar adaptations among firms with substantial production facilities outside of the U.S. Various companies are exploring countermeasures such as price adjustments, altering sourcing strategies, and establishing new domestic plants to mitigate the impact of potential tariffs. The situation continues to evolve as stakeholders within the pharmaceutical sector navigate the complexities of trade relations and government policy.
Source: Noah Wire Services
Subscribe to Industry Updates
