Merck doubles down on US soil with $70B investment strategy
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Merck & Co. has broken ground on a $3 billion manufacturing facility in Elkton, Virginia, as part of a broader $70 billion commitment to expand its US pharmaceutical production and research footprint. The new Center of Excellence for Pharmaceutical Manufacturing will produce active pharmaceutical ingredients and small-molecule drug products.
Spanning 400,000 square feet, the Elkton facility is expected to generate more than 8,000 construction jobs and 500 full-time positions. The project positions Virginia as a central hub in Merck’s reshoring efforts and underscores the company’s long-term focus on domestic manufacturing capacity.
Manufacturing and R&D expansion across the US
Beyond Virginia, Merck is allocating $3.5 billion to expand its Rahway, New Jersey, headquarters, creating 1,000 new research and clinical manufacturing roles. Another $3 billion will support new and upgraded facilities for biologics and small-molecule production nationwide. These efforts could add more than 800 permanent jobs and an estimated 48,000 construction-related positions by 2029.
The strategy follows recent openings in North Carolina and Delaware, where Merck launched a $1 billion vaccine facility in Durham and began work on a biologics center in Wilmington, which will serve as the future production site for its immunotherapy drug Keytruda.
Policy signals and global realignment
Merck’s announcement comes as other pharmaceutical giants accelerate their US expansion plans. Roche and AstraZeneca pledged $100 billion combined earlier this year, while Johnson & Johnson, Eli Lilly and Sanofi are investing billions more.
The timing suggests a potential link to federal pricing reforms and trade policies. In September, Pfizer reached a most-favored nation deal with the Trump administration, committing $70 billion in US capital spending in exchange for tariff exemptions and drug pricing incentives. Merck may be seeking a similar arrangement by prioritizing domestic development.
At the same time, the company is scaling back overseas. Merck recently canceled plans for a £1 billion research facility in London and ended its UK-based R&D operations. The move highlights a strategic realignment toward the US as the company’s base for innovation, manufacturing and regulatory engagement.
Merck’s investments reflect a broader trend among drugmakers to secure supply chains and respond to post-pandemic vulnerabilities. With multiple sites already underway and more to come, the company is positioning itself to meet both market and policy expectations in a shifting global pharmaceutical landscape.
Sources:
Philadelphia Today