Industry Response to Tariffs: Major pharma companies, including Merck, Roche, Novartis, and Johnson & Johnson, announced significant US investments this year, highlighting a broader trend in domestic pharmaceutical manufacturing growth.
AbbVie has announced a $195 million investment to expand active pharmaceutical ingredient (API) manufacturing at its North Chicago, Ill facility. This initiative is part of the company's broader commitment to invest over $10 billion in US innovation and manufacturing capabilities. The expansion aims to enhance AbbVie's domestic chemical synthesis capacity to support current and next-generation neuroscience, immunology, and oncology medicines.
"Over the next decade, AbbVie will expand production of API, drug product, peptides and medical devices in the US to support future medical breakthroughs," said Robert A. Michael, chairman, CEO, AbbVie, in a press release. "This is an important step to maintain US leadership in pharmaceutical innovation and deliver next-generation medicines that make a remarkable impact on patients' lives."
Construction of the new facility is expected to begin later this year, with operations slated to commence by 2027. AbbVie stated that the facility will augment its manufacturing network in the United States, which currently comprises 11 sites employing more than 6,000 people. The site is anticipated to support additional roles through suppliers across the country.
"We're going to tariff our pharmaceuticals, and once we do that, they are going to come rushing back into our country, because we're the big market," said Trump, at an April dinner event on Capitol Hill with House Republicans. "The advantage we have over everybody is that we're the big market. So, we're going to be announcing very shortly a major tariff on pharmaceuticals, and when they hear that, they will leave China, they will leave other places, because most of their product is sold here and they're going to be opening up their plants all over our country."
In response to the tariffs, several other pharmaceutical companies have announced their intentions to invest in US-based manufacturing facilities this year.
Merck, Thermo Fisher, Regeneron, Roche, Novartis, and Johnson & Johnson (J&J) have all unveiled major US investments aimed at expanding biopharmaceutical manufacturing and R&D.
"AbbVie's decision to expand its manufacturing footprint in Illinois is a testament to our state's world-class workforce, infrastructure, cutting-edge research institutions, and location that keeps businesses connected to the nation and the world," said JB Pritzker, governor of Illinois, in the press release. "As a global leader in pharmaceuticals, AbbVie's investment in Illinois bolsters our world-class biomanufacturing ecosystem and creates jobs while it innovates next generation medicines."