Gold prices hovers near all-time high amid global political uncertainty
Investing.com-- GSK (LON:GSK) and Eli Lilly (NYSE:LLY) announced fresh U.S. manufacturing investments on Tuesday, joining a wave of global drugmakers ramping up domestic capacity as the Trump administration considers imposing tariffs on imported medicines.
The story was first reported by the Wall Street Journal. According to the WSJ’s tally, more than a dozen drugmakers have pledged over $350 billion in U.S. investments this decade, partly to offset potential tariff costs.
GSK said it would spend $30 billion in the U.S. over the next five years on research, supply-chain infrastructure, and new plants, including $1.2 billion for a factory outside Philadelphia to make drugs for respiratory diseases and cancer.
The Pennsylvania project is part of a wider plan that also includes new drug substance manufacturing, device and auto-injector capabilities, and AI-driven upgrades across existing sites in Pennsylvania, North Carolina, Maryland, and Montana.
“Today, we are committing to invest at least $30 billion in the United States over the next 5 years, further bolstering the already strong R&D and supply chain we have in the country," GSK CEO Emma Walmsley said in the announcement.
"$1.2 billion of today’s announcement includes construction of an additional next-gen biologics ‘flex’ factory, powered by AI, advanced technologies and expert talent to produce transformational new respiratory and cancer medicines for American patients," she added.
The company highlighted that the U.S. will rank first globally in its clinical trial footprint, and its investments will add to the roughly 15,000 workers it already employs across the country.
Separately, Eli Lilly announced it will invest $5 billion in a new plant near Richmond, Virginia, to produce monoclonal antibodies and bioconjugates, hiring about 650 workers once completed.
The site will also support domestic production of antibody-drug conjugates, a class of targeted therapies primarily used in oncology. Construction is expected to bring 1,800 jobs to the region, with operations slated to begin within five years, the company said.
Lilly added that every dollar invested in the Virginia plant could generate up to four dollars in local economic activity, with each manufacturing job supporting multiple positions in related industries.
“Our investment in Virginia underscores our commitment to U.S. innovation and manufacturing – creating high-quality jobs, strengthening communities and advancing the health and well-being of Americans nationwide,” chief executive David Ricks said.
The U.S. administration is investigating pharmaceutical-specific tariffs, which Trump has said could rise to as much as 250% over 18 months.
(Ayushman Ojha contributed to this report.)