HQ Team
October 21, 2025: Merck and Co. will invest up to $70 billion to expand its domestic manufacturing in the US after President Donald Trump urged pharmaceutical companies to set up their bases within the country and reduce reliance on imports of drugs.
The Rahway, New Jersey-based company announced the start of construction of a $3 billion 400,000-square-foot pharmaceutical manufacturing facility at its Elkton, Virginia, site.
The Center of Excellence for Pharmaceutical Manufacturing is part of a more than $70 billion investment beginning in 2025 to expand domestic manufacturing and research and development to “drive its long-term growth and strengthen the status of the US as a global leader in biopharmaceutical innovation,” according to a statement.
The $3 billion expansion in Rahway builds on Merck’s nearly 85-year history in Elkton, Virginia, enhancing the site with a state-of-the-art pharmaceutical and testing facility.
North Carolina
In 2025, Merck announced nearly $6 billion in manufacturing investments across North Carolina, Delaware, Kansas and Virginia. In March, it completed the construction of a $1 billion, 225,000-square-foot state-of-the-art facility to expand vaccine production capacity in Durham, North Carolina.
In April, the company broke ground on Merck Wilmington Biotech, a $1 billion, 470,000-square-foot state-of-the-art biologics center of excellence in Wilmington, Delaware, to enable the launch and commercial production of next-generation biologics and therapies.
And, in May, Merck Animal Health announced the $895 million expansion of its manufacturing facility in De Soto, Kansas.
Merck plans to invest $3 billion in biologics and small molecule manufacturing sites and capabilities in the US, while also investing more than $3.5 billion in its headquarters in Rahway.
Reduce imports from China
“The company’s efforts across the US will further fortify domestic production and distribution of US medicines and vaccines to protect patients and are forecasted to create more than 48,000 construction-related employment opportunities by 2029,” according to the statement.
President 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.
Pharmaceutical companies such as Eli Lilly, Roche, and Novartis have heeded the president’s call by announcing investments in the US.
