GSK (NYSE:GSK) and Eli Lilly (NYSE:LLY) announced new investments in U.S. manufacturing on Tuesday, joining a growing number of global pharmaceutical companies expanding domestic capacity as the Trump administration weighs tariffs on imported medicines.
The Wall Street Journal first reported the trend, noting that more than a dozen drugmakers have committed over $350 billion in U.S. projects this decade, partly to offset potential tariff-related costs.
GSK plans to spend $30 billion in the U.S. over the next five years, funding research, supply-chain enhancements, and new production facilities, including a $1.2 billion factory near Philadelphia focused on respiratory and cancer therapies. The Pennsylvania site forms part of a broader initiative encompassing drug substance manufacturing, device and auto-injector capabilities, and AI-driven upgrades across facilities 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,” said GSK CEO Emma Walmsley.
“$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.
GSK emphasized that the U.S. will remain its leading country for clinical trials and that the investments will complement the roughly 15,000 employees it already has nationwide.
Meanwhile, Eli Lilly revealed plans to invest $5 billion in a new manufacturing plant near Richmond, Virginia, producing monoclonal antibodies and bioconjugates, with around 650 direct hires once operational. The facility will also enable domestic production of antibody-drug conjugates, key targeted therapies in oncology. Construction is expected to create 1,800 jobs locally, with operations commencing within five years.
“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,” said Lilly CEO David Ricks. The company added that each dollar invested in the Virginia plant could generate up to four dollars in local economic activity, with manufacturing jobs supporting additional positions in related sectors.
The U.S. administration is currently considering pharmaceutical-specific tariffs, with Trump suggesting rates could rise to as much as 250% over an 18-month period.
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