Pharma majors expand US manufacturing amid tariff pressures

Major pharmaceutical companies – including Eli Lilly (NYSE: LLY), Pfizer (NYSE: PFE) and Merck & Co (NYSE: MRK) - are ramping up manufacturing investments in the USA to navigate the evolving trade tariffs and capitalize on domestic tax incentives.

While this strategic shift supports supply chain resilience, it may also elevate production costs and drug prices - raising concerns around affordability as emerging markets pursue regulatory reforms to boost access to biosimilars and biologics, says pharma analytics company Global Data.

Adam Bradbury, pharma analyst at GlobalData, noted: “Eli Lilly plans to invest at least $27 billion in four new US manufacturing sites, focusing on active pharmaceutical ingredients (APIs) and injectables. Lilly’s CEO has commented that tax cuts passed during President Trump’s first term were ‘foundational’ to these domestic investments. Pfizer is also considering relocating overseas manufacturing to its US facilities, depending on the evolving tariff situation, while Merck recently opened a $1 billion plant in North Carolina to boost production of its HPV vaccine, Gardasil.”