Wednesday, October 8, 2025

Factbox-Global drugmakers rush to boost US presence as tariff threat looms

(Reuters) -Global drugmakers are scrambling to shore up their U.S. manufacturing capacity and domestic inventory as the Trump administration moves ahead with a 100% tariff on imported branded and patented drugs, starting October 1.

The sweeping measure has triggered a flurry of activity across the industry, including fast-tracking U.S. manufacturing projects, price cuts and direct-to-consumer sales.

Here’s what drugmakers are doing to mitigate supply-chain risks and reassure investors:

Pfizer

Pfizer reached a deal with President Donald Trump on September 30 to invest $70 billion in research and development and domestic manufacturing, and received a three-year grace period exempting its products from the pharmaceutical-targeted tariffs.

GSK

The London-based drugmaker plans to invest $30 billion in U.S. research and development and supply chain infrastructure over five years.

Eli Lilly

The U.S. drugmaker said in September it will invest $5 billion to build a manufacturing facility in Virginia. The facility is the first of four new U.S. plants planned under its $27 billion expansion over the next five years.

Johnson & Johnson

The drugmaker plans to raise U.S. investments by 25%, totaling $55 billion, over the next four years. It plans to build four plants, including one at Wilson, North Carolina, and another at Tokyo-based Fujifilm Biotechnologies’ manufacturing site in Holly Springs, North Carolina, over the next 10 years.

Locations for the other plants remain undisclosed.

Roche

The Swiss drugmaker said in April it will invest $50 billion in the U.S. over the next five years.

A month later, it announced an additional $550 million investment to expand its Indianapolis diagnostics manufacturing hub. The expansion will span Indiana, Pennsylvania, Massachusetts, and California, creating more than 12,000 jobs.

Roche said in May it plans to invest more than $700 million in a new drug manufacturing facility in Holly Springs, North Carolina.

CEO Thomas Schinecker said in July the company had moved around inventories and ramped up production of all the medicines that it already produced in the U.S. in anticipation of tariffs.

AstraZeneca

The Anglo-Swedish drugmaker will invest $50 billion on U.S. manufacturing by 2030. The investment will fund a new drug substance facility in Virginia, its largest single-site global investment, alongside expansions in Maryland, Massachusetts, California, Indiana and Texas.

It has already started technology transfers and is managing inventory in 2025 to minimize any tariff hit. Company executives have said the impact would be “very short-lived.”

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