A global race between pharmaceutical companies to boost their investments in the United States to avoid Trump’s tariffs

The policies of the administration of US President Donald Trump have prompted global pharmaceutical companies to accelerate the strengthening of manufacturing within the United States and raise inventory levels, with the White House continuing to consider imposing 100% customs duties on imported branded and patented medicines.

Although the application of duties on companies investing in American manufacturing has been postponed, the policy has actually stimulated the acceleration of the establishment of new projects within the United States, price reductions, and the expansion of direct sales to the consumer, according to what was reported by the “Trading” platform. View " Economic.

 

The two companies, “Pfizer” And “AstraZeneca” They obtained customs exemptions extending for several years, through pricing agreements and their commitment to the new platform created by Trump as an intermediary between patients and pharmaceutical companies, while companies such as Eli Lilly pledged to… And “Johnson & Johnson” and "Merck" By pumping billions of dollars to expand its operations within the United States to avoid sanctions.

 

Many international companies have adopted steps to reduce supply chain risks and reassure investors, as “Pfizer” announced… On September 30, it reached an agreement with Trump to invest $70 billion in research, development, and local manufacturing, and obtained a 3-year grace period exempting its products from customs duties targeting the pharmaceutical sector.

 

The British company Glaxo revealed plans to invest $30 billion in research, development, and supply chains within the United States over a period of 5 years, while the American company, Eli Lilly, confirmed that it will invest $5 billion to establish a new factory in The state of Virginia, as the first of 4 facilities within a $27 billion expansion plan over the next five years.

 

Johnson & Johnson announced It will increase its investments in the United States by 25% to reach $55 billion within 4 years, with plans to build 4 new facilities, including a factory in Wilson, North Carolina, while Roche explained… The Swiss company said it would invest $50 billion in the United States over the next five years, then raised the investment value by another $550 million, in addition to pumping more than $700 million into a new drug manufacturing facility in North Carolina.

 

As for “AstraZeneca” Britain announced that it will invest $50 billion in American manufacturing by 2030, including establishing a major facility in Virginia and expansions in several states, and has already begun technology transfer and inventory management processes to reduce the impact of tariffs in 2025, as well as Swiss Novartis, which confirmed that it will spend $23 billion to build and expand 10 facilities inside the United States in 5 years, including 6 new factories and expanding its research center in San Diego.

 

And from For its part, Sanofi announced: The French company announced that it will invest no less than $20 billion in the United States until 2030 to enhance production capacity in partnership with local manufacturers, as well as the “Biogen” company. Which revealed plans to invest an additional two billion dollars in its facilities in North Carolina, to expand its capabilities in manufacturing genetic therapies and automation.

 

Merck has begun… The American company will build a pharmaceutical factory worth $3 billion in Virginia as part of an investment plan exceeding $70 billion to enhance local manufacturing. It will also invest $1 billion in a new facility as an alternative for the production of biological medicines, in addition to new facilities in North Carolina and expansion operations worth $895 million in Kansas.

 

Amgen stated that it will invest $900 million to expand its factory in the US state of Ohio, and has also begun construction of a new research center worth $600 million in California, and an investment of $650 million in the Puerto Rico facility, while Novo Nordisk stated The Danish company said that its strong manufacturing presence in the United States puts it in a good position to deal with the upcoming duties.

 

As for AbbVie, it announced that it will continue to implement its expansion within the United States worth $10 billion over the next decade, with its possession of 11 manufacturing facilities within the country and its ability to absorb the impact of the duties in 2025, as well as the company “Gilead” With new investments worth $11 billion to enhance manufacturing and research within the United States, bringing its total commitments to $32 billion.

 

Cipla noted that India is expanding its manufacturing presence in the United States by investing in complex respiratory product manufacturing capabilities in Massachusetts and New York, CSL said. The Australian company said it will invest $1.5 billion in the United States to manufacture plasma-derived treatments within 5 years.

 

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