Home Stocks Merck’s $70 Billion U.S. Expansion Marks Its Biggest Move Yet

Merck’s $70 Billion U.S. Expansion Marks Its Biggest Move Yet

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Merck Expands U.S. Investments Beyond $70 Billion to Boost Manufacturing and Research

Merck announced on Monday that it will expand its U.S. investments to more than $70 billion as the pharmaceutical giant works to strengthen its manufacturing and research operations across the country.

The move follows growing pressure from President Donald Trump, who has urged global drugmakers to produce more medicines domestically instead of relying on imports of active ingredients or finished products.

In 2025, at least 14 major pharmaceutical companies worldwide have revealed similar plans to expand their U.S. manufacturing footprint. The goal is to reduce supply chain risks and provide greater assurance to investors amid tariff challenges and shifting trade policies.

New Facilities and Expansions Across the U.S.

Merck confirmed it has started construction on a $3 billion manufacturing site in Elkton, Virginia, as part of its broader investment plan. This site alone is expected to create around 500 new jobs, exceeding the company’s earlier goal of 300 positions tied to a smaller $2 billion project, according to Virginia Governor Glenn Youngkin.

The company also plans to invest an additional $3 billion to expand biologics and small molecule manufacturing capabilities across several U.S. sites. On top of that, Merck will allocate over $3.5 billion toward upgrades and new facilities at its headquarters in Rahway, New Jersey.

Earlier, Merck had announced a $1 billion investment in a new Delaware facility to produce biologics and its cancer therapy Keytruda, a move expected to create more than 4,500 jobs. In March, the company also opened a $1 billion plant in North Carolina, further reinforcing its U.S. presence.

Strengthening Domestic Production

By significantly increasing its investment, Merck aims to secure its supply chain, expand domestic production, and maintain a competitive edge in the biopharmaceutical market. The company’s U.S. expansion aligns with a broader industry shift toward local manufacturing and innovation in response to geopolitical and trade pressures.