Topline Findings
- AbbVie Investment: AbbVie commits $195 million to expand active pharmaceutical ingredient manufacturing at its North Chicago facility, supporting next-generation neuroscience, immunology, and oncology medicines.
- US Manufacturing Boost: Construction of the new facility will begin in 2025, with operations expected by 2027, adding to AbbVie’s 11 US sites and thousands of supplier roles nationwide.
- Industry Response to Tariffs: Major pharma companies, including Merck, Roche, Novartis, and Johnson & Johnson, announced significant US investments this year, highlighting a broader trend in domestic pharmaceutical manufacturing growth.
AbbVie has announced a $195 million investment to expand active pharmaceutical ingredient (API) manufacturing at its North Chicago, Ill facility. This initiative is part of the company's broader commitment to invest over $10 billion in US innovation and manufacturing capabilities. The expansion aims to enhance AbbVie's domestic chemical synthesis capacity to support current and next-generation neuroscience, immunology, and oncology medicines.1
AbbVie’s Expansion is Latest in US Biopharmaceutical Manufacturing Growth
"Over the next decade, AbbVie will expand production of API, drug product, peptides and medical devices in the US to support future medical breakthroughs," said Robert A. Michael, chairman, CEO, AbbVie, in a press release. "This is an important step to maintain US leadership in pharmaceutical innovation and deliver next-generation medicines that make a remarkable impact on patients' lives."
Tariffs and Industry Response
Construction of the new facility is expected to begin later this year, with operations slated to commence by 2027. AbbVie stated that the facility will augment its manufacturing network in the United States, which currently comprises 11 sites employing more than 6,000 people. The site is anticipated to support additional roles through suppliers across the country.1
- The announcement coincides with President Trump’s move to impose global, reciprocal tariffs on the pharmaceutical industry, a policy shift with potential implications for manufacturing and supply chains.
- In April, the President expressed his belief that these tariffs would incentivize pharmaceutical companies to relocate to the United States.2
- In a recent interview with CNBC, Trump stated that the tariffs could reach up to 250%.
- Initially, a smaller tariff is planned, with the possibility of increasing over the next year to 18 months, aiming to have drugs manufactured in the United States and sold to Americans at prices aligned with his Most-Favored-Nation policy.3
“We’re going to tariff our pharmaceuticals, and once we do that, they are going to come rushing back into our country, because we’re the big market," said Trump, at an April dinner event on Capitol Hill with House Republicans. “The advantage we have over everybody is that we’re the big market. So, we’re going to be announcing very shortly a major tariff on pharmaceuticals, and when they hear that, they will leave China, they will leave other places, because most of their product is sold here and they’re going to be opening up their plants all over our country.”2
Industry Investment in Response
In response to the tariffs, several other pharmaceutical companies have announced their intentions to invest in US-based manufacturing facilities this year.
Merck, Thermo Fisher, Regeneron, Roche, Novartis, and Johnson & Johnson (J&J) have all unveiled major US investments aimed at expanding biopharmaceutical manufacturing and R&D.
- Merck is constructing a $1 billion biologics center in Wilmington, Del, supporting next-generation biologics and Keytruda production while creating 500 jobs.
- Thermo Fisher is committing $2 billion over four years to manufacturing expansion and R&D initiatives.
- Regeneron is partnering with FUJIFILM Diosynth to nearly double its US biologics capacity, creating roughly 1,000 jobs alongside other infrastructure projects.
- Roche plans a $50 billion investment over five years across pharmaceuticals, diagnostics, gene therapy, and AI-driven R&D, expected to generate over 12,000 jobs.
- Novartis is investing $23 billion to expand domestic manufacturing and R&D, with plans for 10 facilities and thousands of new jobs.
- J&J will invest $55 billion over four years to support new and expanded facilities and R&D across multiple therapeutic areas.4-8
"AbbVie's decision to expand its manufacturing footprint in Illinois is a testament to our state's world-class workforce, infrastructure, cutting-edge research institutions, and location that keeps businesses connected to the nation and the world," said JB Pritzker, governor of Illinois, in the press release. "As a global leader in pharmaceuticals, AbbVie's investment in Illinois bolsters our world-class biomanufacturing ecosystem and creates jobs while it innovates next generation medicines."
References
- AbbVie Announces $195 Million Investment to Expand Active Pharmaceutical Ingredient Manufacturing in the U.S. AbbVie. August 12, 2025. Accessed August 13, 2025. https://news.abbvie.com/2025-08-12-AbbVie-Announces-195-Million-Investment-to-Expand-Active-Pharmaceutical-Ingredient-Manufacturing-in-the-U-S
- Trump: 'Major Tariff' on Pharmaceuticals Coming Soon. PharmExec. April 8, 2025. Accessed August 13, 2025. https://www.pharmexec.com/view/trump-major-tariff-on-pharmaceuticals-coming-soon
- President Trump Warns of 250% Tariffs While Industry Continues to React to MFN Order. PharmExec. August 6, 2025. Accessed August 13, 2025. https://www.pharmexec.com/view/president-trump-warns-250-tariffs-industry-continues-react-mfn
- Merck Begins Construction on $1 Billion Biologics Manufacturing Hub. PharmExec. May 5, 2025. Accessed August 13, 2025. https://www.pharmexec.com/view/merck-begins-construction-1-billion-biologics-manufacturing-hub
- Thermo Fisher to Invest $2 Billion in US Biotech Manufacturing, R&D. PharmExec. April 28, 2025. Accessed August 13, 2025. https://www.pharmexec.com/view/thermo-fisher-invest-2-billion-us-biotech-manufacturing-rd
- Regeneron, Roche Launch Major US Expansion Plans to Meet Growing Demand for Biologics and Innovation. PharmExec. April 22, 2025. Accessed August 13, 2025. https://www.pharmexec.com/view/regeneron-roche-launch-major-us-expansion-plans-meet-growing-demand-biologics-innovation
- Novartis to Invest $23 Billion in US Manufacturing and R&D Over Five Years. PharmExec. April 11, 2025. Accessed August 13, 2025. https://www.pharmexec.com/view/novartis-invest-23-billion-us-manufacturing-over-five-years
- Johnson & Johnson to Invest Over $55 Billion in US Manufacturing Facilities. PharmExec. March 21, 2025. Accessed August 13, 2025. https://www.pharmexec.com/view/johnson-johnson-invest-over-55-billion-us-manufacturing-facilities
