Major pharmaceutical companies around the world are stepping up U.S. manufacturing, stockpiling inventory and striking pricing agreements as the Trump administration weighs a potential 100% tariff on imported branded and patented medicines. While the administration has offered delayed enforcement for companies that invest in domestic production, the proposal has already spurred rapid capital deployments, price concessions and changes in distribution strategy.
Overview
Pharmaceutical firms are employing a range of tactics to mitigate exposure to the tariff threat and reassure investors. Some companies have secured multi-year exemptions by tying investments and pricing commitments to the administration’s new platform. Others have announced multi-billion-dollar plans to scale up U.S. research, development and manufacturing capacity, or said they will move or expand production to avoid potential penalties.
Company actions and commitments
The following summarizes steps company by company, reflecting public commitments and investment plans intended to reduce tariff risk and strengthen domestic supply.
- Pfizer - Pfizer reached an agreement with President Donald Trump on September 30 to invest $70 billion in research and development and domestic manufacturing. As part of that deal, Pfizer received a three-year grace period during which its products are exempt from the pharmaceutical-targeted tariffs.
- GSK - The London-based company intends to dedicate $30 billion to U.S. research, development and supply chain infrastructure over the next five years.
- Eli Lilly - The company announced plans to construct multiple U.S. plants. U.S. President Donald Trump said in January that Eli Lilly plans to build six plants in the United States. Previously, Lilly stated it would spend at least $27 billion to build four U.S. plants to expand production and strengthen medical supply chains, and has provided details on three sites in Alabama, Virginia and Texas. In January, Lilly added a $3.5 billion pharmaceutical manufacturing facility in Pennsylvania as its fourth new site, aimed at expanding U.S. production and bolstering medical supply chains.
- Johnson & Johnson - J&J plans to raise U.S. investments by 25%, bringing total planned spending to $55 billion over the next four years. The company intends to build four plants, including one in Wilson, North Carolina, and another at a Tokyo-based Fujifilm Biotechnologies manufacturing site in Holly Springs, North Carolina, over the next 10 years. In February it said it would invest more than $1 billion to create a new cell therapy facility in Pennsylvania as part of its broader U.S. expansion plans.
- Roche - The Swiss firm announced in April last year it would invest $50 billion in the U.S. over five years. A month later it added a $550 million investment to expand diagnostics manufacturing in Indianapolis. The company’s expansion plans are slated to affect Indiana, Pennsylvania, Massachusetts and California, and are projected to create over 12,000 jobs. In January it disclosed it would more than double investment at its Holly Springs drug manufacturing site to about $2 billion, up from just over $700 million announced in May 2025.
- AstraZeneca - AstraZeneca committed to invest $50 billion in U.S. manufacturing by 2030. That package includes a new drug substance facility in Virginia that it described as its largest single-site global investment, plus expansions in Maryland, Massachusetts, California, Indiana and Texas. The company has begun technology transfers and managed inventory in 2025 to reduce the potential tariff impact; executives have said any effect would be "very short-lived." Additionally, AstraZeneca and Pfizer secured multi-year tariff exemptions through pricing deals and commitments to the administration’s new TrumpRx.gov platform.
- Novartis - Novartis plans to spend $23 billion to build and expand 10 U.S. facilities over five years. This encompasses six new manufacturing plants and an expansion of its San Diego research and development campus, a project expected to generate more than 1,000 jobs.
- Sanofi - The French drugmaker intends to invest at least $20 billion in the U.S. through 2030 to enhance manufacturing and research capabilities. Sanofi will expand U.S. capacity through both direct investments in company sites and partnerships with U.S. manufacturers. Chief Financial Officer François Roger said in July the potential tariffs were expected to have a limited impact in 2025 because inventory was already in place in the U.S.
- Biogen - Biogen plans to add $2 billion in investment to its existing North Carolina manufacturing footprint to increase capacity for gene-targeting therapies and automation. The company operates seven plants in the state, with an eighth expected to begin operations in late 2025.
- Merck - Merck has started construction of a $3 billion pharmaceutical plant in Virginia as part of a broader plan to invest more than $70 billion in U.S. manufacturing and R&D. It will also spend $1 billion on a Delaware plant to produce biologics and its cancer drug Keytruda, moves intended to boost U.S. production and could result in more than 4,500 jobs. Merck also opened a $1 billion facility at its North Carolina site in March, and its animal health unit will invest $895 million to expand manufacturing and R&D in Kansas as part of a $9 billion U.S. investment through 2028. CEO Robert Davis has said the expected tariff impact in 2025 would be minimal, with the company benefiting from inventory management and increased U.S. manufacturing.
- Amgen - Amgen said it would invest $900 million to expand its Ohio manufacturing operations, bringing total investment in the state to $1.4 billion and adding 750 jobs. In December the company committed $1 billion to build a second facility in Holly Springs, North Carolina. Separately, Amgen is investing over $600 million to establish a new R&D center in Thousand Oaks, California, and will invest $650 million to expand manufacturing in Juncos, Puerto Rico, a project expected to create nearly 750 jobs.
- Novo Nordisk - The Danish company has said its strong U.S. manufacturing footprint positions it well against potential tariff measures, describing itself as "very U.S.-centric and U.S.-focused."
- AbbVie - AbbVie said in January it committed $100 billion over the next decade to U.S.-based research and development as part of a three-year agreement with the administration to lower drug prices. With 11 U.S. manufacturing sites, AbbVie said it was "fairly insulated" from tariff effects this year due to inventory management. In February it said it would invest $380 million to build two manufacturing facilities at its North Chicago, Illinois, campus to support production of neuroscience and obesity medicines.
- Gilead Sciences - Earlier in the year Gilead announced $11 billion in new planned investment in the U.S., increasing its total pledged domestic investment to $32 billion. The company reported it had begun work on a development and manufacturing hub at its Foster City, California headquarters and is advancing two additional sites.
- Cipla - The Indian manufacturer is expanding U.S. capacity for complex respiratory products at advanced facilities in Fall River, Massachusetts, and Central Islip, New York.
- CSL - Australia’s CSL said in November it would invest $1.5 billion in the U.S. to produce plasma-derived therapies, expanding its footprint over five years. In March the company announced it would expand a plasma therapy facility in Kankakee, Illinois, with operations expected by 2031.
Common mitigation strategies
Across firms, several recurring approaches are visible:
- Large-scale capital expenditure pledges to increase domestic manufacturing and R&D capacity.
- Inventory build-up in the U.S. and accelerated technology transfers to reduce near-term tariff exposure.
- Pricing arrangements and commitments tied to administrative platforms to secure temporary exemptions from tariffs.
- Strategic site selection and the use of partnerships to scale capacity quickly.
Implications for supply chains and markets
These corporate strategies are intended to limit disruption from a high tariff on imported branded medicines by localizing production, smoothing supply through inventory, and building political and commercial agreements to secure exemptions. The collective investment commitments span tens of billions of dollars, and in several cases include new facilities that are expected to support thousands of jobs and expanded regional manufacturing bases.
Companies have framed some of these moves as defensive - protecting price and supply - while also positioning domestic expansion as a long-term adjustment in production footprints. Several firms explicitly noted limited expected tariff impact in 2025 due to inventory and early manufacturing moves.
Conclusion
Faced with the prospect of a sweeping tariff on imported branded medicines, global drugmakers have accelerated U.S. investment plans and moved to stockpile inventory and negotiate conditional exemptions. The steps taken so far reflect a mix of immediate defensive tactics and sustained capacity building in the United States. While enforcement relief has been offered for firms investing domestically, the full impact will depend on how the policy is finalized and how rapidly new capacity comes online.