International pharmaceutical companies are increasing their investments in the US to be closer to key markets and mitigate the risks of global trade and supply chain disruptions. Despite pharmaceutical imports being exempt from US tariffs, President Trump’s threats to impose tariffs as high as 250% have created uncertainty for the industry. The Supreme Court is currently evaluating the legality of the administration’s global tariffs, which may impact the industry.
Several companies have recently announced significant investments in the US. Samsung Biologics, a South Korean-based company, has signed a $1.3 billion contract manufacturing deal with a US pharmaceutical company. This deal is the second-largest since the company’s founding in 2011 and adds to its growing number of production contracts with companies outside of South Korea. Samsung Biologics has also opened a laboratory in San Francisco and is considering further US expansion opportunities.
Amgen, a US-based drugmaker, is investing over $600 million to build a science and innovation center at its global headquarters in Thousand Oaks, California. The center will bring together experts to accelerate research and development of next-generation medicines, creating hundreds of US jobs. This investment builds on Amgen’s previous investments, including a $900 million factory expansion in Central Ohio and a $1 billion manufacturing plant in North Carolina.
Biocon, an India-based company, has opened its first US factory in Cranbury, New Jersey, expanding its manufacturing footprint in the country. The company acquired the oral medications factory from Eywa Pharma in 2023 and has invested over $30 million to update the facility, increasing its production capacity to 2 billion tablets per year. The move brings Biocon closer to patients, healthcare providers, and partners across the US and other important markets.
These investments demonstrate the pharmaceutical industry’s efforts to adapt to changing global trade dynamics and supply chain complexities. By investing in the US, companies can reduce their reliance on international supply chains and mitigate the risks associated with tariffs and trade uncertainty. The investments also highlight the importance of the US market for pharmaceutical companies, with many seeking to establish a presence in the country to be closer to key markets and customers.