Roche Invests $700 Million in North Carolina Facility to Advance Obesity Drug Manufacturing

Roche’s Genentech unit has announced a $700 million investment in a new 700,000-square-foot drug manufacturing facility in Holly Springs, NC. According to the company, the site will support its pipeline of next-generation obesity therapies and is expected to create over 400 high-wage manufacturing jobs once operational. Roche also stated that the investment could expand in the future based on business needs as well as US policy.¹

“Our new facility near Raleigh, NC, an established biopharmaceutical talent hub, will serve as an important new setting within our manufacturing network to help deliver on the promise of our company’s life-changing science and industry-leading pipeline,” said Ashley Magargee, CEO, Genentech, in a press release. “We are thrilled to establish this relationship with the city of Holly Springs, where we expect to have a positive impact on the local economy and community, as we have across the United States since we pioneered the biotech industry nearly 50 years ago.”

The announcement comes a few weeks after Roche shared plans to invest $50 billion in the United States over the next five years to enhance its pharmaceutical and diagnostics operations. Other projects include a new gene therapy facility in Pennsylvania, expanded manufacturing and distribution capabilities, a continuous glucose monitoring facility in Indiana, and a new AI-driven R&D center in Massachusetts.²

Several other pharma companies have begun construction on new manufacturing facilities in the United States. Last week, Merch Animal Health, a division of Merck & Co., announced plans to invest $895 million to expand manufacturing capabilities in De Soto, Kansas, including $860 million towards increasing large molecule vaccine and biologic production and $35 million to enhance R&D efforts focused on parasiticides and novel therapeutics. Merck began construction on a $1 billion 470,000-square-foot biologics manufacturing hub in Wilmington, Del. The site is expected to support next-generation biologics production and also serve as a future US manufacturing hub for Keytruda (pembrolizumab).^3,4

Last month, Thermo Fisher Scientific announced a $2 billion investment in the United States over the next four years, including $1.5 billion for increased manufacturing and $500 million towards R&D that involves high-impact innovations.⁵

Other notable investments in the United States this year include Johnson & Johnson, who announced plans to invest $55 billion in three new manufacturing facilities and expanding existing sites; Biogen announced plans to establish a new global headquarters and innovation hub in Cambridge, Mass.; and Novartis announced plans to invest $23 billion over the next five years with the goal of producing 100% of medicines going to American patients domestically.^6-8

Yesterday, President Trump stated on the Truth Social social media platform that he would sign an executive order implementing a most-favored-nation policy for pharmaceutical pricing, which he claims could reduce prices by 30%–80%. While details remain unclear, the potential policy could impact how companies such as Roche structure pricing and manufacturing strategies moving forward, especially as they invest in US-based production.⁹

“I’m proud that Genentech has chosen North Carolina for its first facility on the East Coast,” said Josh Stein, Governor of North Carolina, in the press release. “This major investment in Holly Springs shows that our state continues to be a leading destination for life sciences and advanced manufacturing. With more than 400 new jobs on the way, this project will strengthen our economy, create opportunities for our people, and advance cutting-edge scientific innovation right here in North Carolina.”

References

1. Roche and Genentech Announce New North Carolina Manufacturing Facility. Genentech. May 12, 2025. Accessed May 12, 2025. https://www.gene.com/media/press-releases/15059/2025-05-12/roche-and-genentech-announce-new-north-c

2. Regeneron, Roche Launch Major US Expansion Plans to Meet Growing Demand for Biologics and Innovation. PharmExec. April 22, 2025. Accessed May 12, 2025. https://www.pharmexec.com/view/regeneron-roche-launch-major-us-expansion-plans-meet-growing-demand-biologics-innovation

3. Merck, Lilly Commit Large Investments to US R&D and Manufacturing Expansion. PharmExec. May 12, 2025. Accessed May 12, 2025. https://www.pharmexec.com/view/merck-lilly-commit-investments-us-r-d-manufacturing-expansion

4. Merck Begins Construction on $1 Billion Biologics Manufacturing Hub. PharmExec. May 5, 2025. Accessed May 12, 2025. https://www.pharmexec.com/view/merck-begins-construction-1-billion-biologics-manufacturing-hub

5. Thermo Fisher to Invest $2 Billion in US Biotech Manufacturing, R&D. Pharm Exec. April 28, 2025. Accessed May 12, 2025. https://www.pharmexec.com/view/thermo-fisher-invest-2-billion-us-biotech-manufacturing-rd

6. Johnson & Johnson to Invest Over $55 Billion in US Manufacturing Facilities. Pharm Exec. March 21, 2025. Accessed May 12, 2025. https://www.pharmexec.com/view/johnson-johnson-invest-over-55-billion-us-manufacturing-facilities

7. Biogen to Establish New Global HQ and Innovation Hub in Massachusetts by 2028. PharmExec. March 24, 2025. Accessed May 12, 2025. https://www.pharmexec.com/view/biogen-establish-new-global-hq-innovation-hub-massachusetts-2028

8. Novartis to Invest $23 Billion in US Manufacturing and R&D Over Five Years, PharmExec. April 11, 2025. Accessed May 12, 2025.

9. President Trump Announces Most-Favored-Nation Policy for Pharma Prices. PharmExec. May 12, 2025. Accessed May 12, 2025. https://www.pharmexec.com/view/president-trump-most-favored-nation-policy-prices