In February 2025, Eli Lilly announced that it would invest $27 billion over the next five years to build four new production bases in the United States. This measure has led to a total investment of over 50 billion US dollars in the manufacturing industry in the United States in recent years. Among the newly built bases, there are three that focus on the production of small molecule active pharmaceutical ingredients, including the production of active pharmaceutical ingredients for the popular weight loss drug tilpotide. The other company is dedicated to the production of injections. The layout of Eli Lilly is clearly aimed at strengthening its supply chain in the United States, reducing its dependence on imported raw materials, and thus avoiding the risk of cost surges that may arise from increased tariffs. ​

 

 

 

Almost simultaneously, Novo Nordisk quickly followed suit and announced an additional $4.1 billion expansion of its factory in North Carolina. This move aims to significantly increase the production and supply capacity of its blockbuster products, such as weight loss drug Wegovy and diabetes treatment drug Ozempic. Novo Nordisk's expansion plan is not only a response to the growing market demand, but also a strategic move to ensure controllable product costs and stable supply under the shadow of tariffs. By expanding its production scale in the United States, Novo Nordisk can reduce the impact of fluctuations in import tariffs on product prices and market competitiveness. ​

 

 

 

Johnson&Johnson is also unwilling to fall behind, and recently announced that it will invest over $55 billion in its pharmaceutical and medical technology business in the United States over the next four years, an increase of up to 25% compared to the previous four years. This huge amount of funds will be used to build three new production bases and expand some existing factories. Johnson&Johnson's investment plan covers multiple areas such as research and development infrastructure construction and technological upgrades, aiming to enhance its competitiveness in the US market from multiple perspectives. At the same time, by strengthening local production, it aims to reduce the potential negative effects of tariff policies. ​

 

 

 

Merck has also taken active action by opening a new pharmaceutical factory worth approximately $1 billion in Durham, North Carolina, and has ambitious plans to invest a total of $8 billion in the United States by 2028. This series of actions indicates that Merck is committed to expanding its local production scale, optimizing its supply chain structure to address potential tariff risks, and ensuring stable supply and price competitiveness of its products in the US market. ​

 

 

 

Pfizer, on the other hand, plans to move some of its European production bases to existing factories in the United States, fully utilizing the capacity flexibility of its 13 domestic factories in the United States. This strategy not only helps Pfizer reduce production costs, but also effectively avoids tariff risks, ensuring the price advantage and supply stability of its products in the US market. By flexibly adjusting its production layout, Pfizer has demonstrated its adaptability in a complex tariff environment