Stock Markets February 23, 2026

AbbVie to invest $380 million in two new API plants at North Chicago site

Biopharma expands U.S. active pharmaceutical ingredient capacity with construction slated for 2026 and operations expected in 2029

By Nina Shah ABBV
AbbVie to invest $380 million in two new API plants at North Chicago site
ABBV

AbbVie said it will commit $380 million to construct two active pharmaceutical ingredient (API) manufacturing facilities at its Illinois campus. The project, aimed at increasing domestic production for neuroscience and obesity medicines, forms part of the company’s wider effort to scale U.S. manufacturing amid recently introduced tariffs on pharmaceutical imports. Construction is planned to start in spring 2026 and the facilities are expected to be fully operational in 2029; AbbVie also plans to hire about 300 staff for the North Chicago site.

Key Points

  • AbbVie will spend $380 million to build two API manufacturing facilities at its North Chicago, Illinois campus to expand production for neuroscience and obesity medicines.
  • Construction is set to begin in spring 2026, with both facilities expected to be fully operational in 2029; the project will include advanced manufacturing technologies and artificial intelligence and is expected to create about 300 jobs.
  • The investment is positioned within a broader corporate push to scale domestic manufacturing amid changes to U.S. tariff policy on pharmaceutical imports; AbbVie already operates 11 U.S. manufacturing sites and committed $100 billion to U.S. R&D earlier in January.

AbbVie announced a $380 million investment to erect two new active pharmaceutical ingredient manufacturing facilities at its Illinois campus, a move intended to expand domestic production capacity for its neuroscience and obesity medicines. The company described the spending as part of a broader initiative to scale up U.S. manufacturing capabilities.

The decision comes as drugmakers reassess domestic capacity in light of tariff policy changes. The announcement references the Trump administration's imposition of a 100% tariff on branded drugs in October, noting the tariff is intended to apply only to producers that had not already broken ground on U.S. manufacturing plants.

AbbVie said construction on the new facility in North Chicago, Illinois, will begin in spring 2026. Both facilities are expected to be fully operational in 2029. The company said the new plants will incorporate advanced manufacturing technologies and artificial intelligence to support production of medicines from its future pipeline.

The drugmaker highlighted the technical complexity of API production - the process of making a drug's active chemical components - as a key reason for the targeted investment. AbbVie also said it plans to hire approximately 300 people at the North Chicago site, a mix that will include engineers, scientists, manufacturing operators and laboratory technicians.

Earlier this year, in January, AbbVie committed $100 billion over the next decade to U.S.-based research and development. That pledge included a previously announced $195 million expansion at the same North Chicago facility to boost API production for immunology, oncology and neuroscience drugs.

AbbVie currently operates 11 manufacturing sites in the United States. The company said it is in discussions with multiple U.S. states about potential projects and expects to announce additional investments in 2026.


Operational timeline and staffing

  • Construction begins: spring 2026.
  • Facilities fully operational: expected in 2029.
  • Planned hires at North Chicago: about 300, including engineers, scientists, manufacturing operators and lab technicians.

Risks

  • Timeline and execution risk - construction is scheduled to start in spring 2026 with full operations targeted for 2029, exposing the project to potential delays or execution challenges that could affect production schedules and hiring.
  • Regulatory and policy uncertainty - the article notes a 100% tariff on branded drugs that applies only to producers who had not already broken ground, creating uncertainty about how tariff policy may influence future investment decisions and competitive positioning.
  • Investment pipeline uncertainty - AbbVie is in discussions with multiple U.S. states and expects to announce further investments in 2026, but the timing and scale of those future projects are not detailed and remain uncertain.

More from Stock Markets

Morgan Stanley Names Top Tobacco Stocks as Industry Accelerates Shift to Smoke-Free Products Feb 23, 2026 C.H. Robinson Chief Sees AI Prompting Consolidation, Dismisses Recent Stock Slide Feb 23, 2026 Lagarde Says Eurozone Inflation and Rate Policy Remain 'In Good Place' at Washington Conference Feb 23, 2026 C.H. Robinson CEO Calls AI-Driven Stock Drop a Short-Term Reaction, Predicts Industry Consolidation Feb 23, 2026 iPower Shares Drop After Move to Distribute Crypto Infrastructure Hardware Feb 23, 2026