HQ Team
May 8, 2025: Merck Animal Health will invest $895 million in its US facility to develop novel parasiticides and therapeutics, and expand, filling and freeze dryer capacity, according to a company statement.
Construction on Merck Animal Health’s manufacturing facility in De Soto, Kansas, will begin immediately on the existing Merck-owned property that is the site of its biologic facility.
The 200,000-square-foot factory will expand, filling and freeze dryer capacity for large molecule vaccines and biologic products for Merck Animal Health.
The investment includes an $860 million investment in the site’s existing manufacturing facility and a further $35 million investment in its research and development.
Tariffs
President Donald Trump has called on pharmaceutical companies to invest more heavily in the United States by threatening to impose significant tariffs on imported pharmaceuticals.
His administration’s strategy aims to incentivise drugmakers to relocate manufacturing and operations back to the US to reduce reliance on foreign suppliers, particularly from countries like China and India, which dominate the supply of generic drugs and active pharmaceutical ingredients.
“As a Center of Excellence, it will play a pivotal role in the manufacturing of Merck Animal Health’s products and will complement Merck Animal Health’s extensive US and international network of animal health product manufacturing plants,” according to the company.
Commercial manufacturing is expected to begin in 2030, creating more than 200 full-time roles.
‘Animal health corridor’
Merck Animal Health’s investment in its research and development laboratories will enhance its research capabilities, focusing on advancing Merck Animal Health’s global drug discovery and development initiatives, according to the statement.
“Our De Soto, Kansas manufacturing facility is strategically located in the heart of the Animal Health Corridor,” said Richard DeLuca, president, Merck Animal Health.
“This region is renowned for its concentration of animal health companies, fostering an unparalleled ecosystem for innovation, collaboration and industry leadership.
“This investment in our site is designed to increase Merck Animal Health’s ability to meet the growing customer demand for its portfolio of animal biologics products and ensure the company remains at the forefront of innovation in the animal health sector. This initiative also reflects our dedication to advancing animal health and our ongoing investment in the communities where we operate.”
State partnership
Merck Animal Health is partnering with the state of Kansas to expand the existing manufacturing facility. This is the largest investment by Merck Animal Health in Kansas.
Since the advent of the 2017 Tax Cuts and Jobs Act, Merck has allocated more than $12 billion to enhance its domestic manufacturing and research capabilities, with additional planned investments of more than $9 billion by the end of 2028.
Merck Animal Health is present in more than 50 countries, while its products are available in some 150 markets.
