Pharmaceutical empires strengthen their investments in the US
Expansion strengthens the ability of large monopolies to deliver health-focused products more efficiently in North America.
A scientist works in a laboratory of German pharmaceutical giant Bayer.
Two large international pharmaceutical companies have announced new multi-million dollar investments in the country. Last week, news broke about the creation of new factories, more than 9,000 new jobs and the possibility of delivering health-focused products more efficiently in North America.
German Bayer, one of them, will invest $44 million to expand its consumer health products manufacturing plant in Myerstown, Pennsylvania.
The company, which produces over-the-counter health and wellness products, will bring its investment to a 70,000-square-foot plant that is located in Lebanon County and includes eight new product packaging lines, as well as automated logistics systems.
These improvements are designed to increase efficiency and enable faster time to market for products such as Bayer Aspirin, Aleve, Claritin, One A Day, Alka-Seltzer Plus and Midol.
Bayer will integrate advanced technology and streamlined processes into its facilities to enhance its ability to deliver reliable, science-based self-care solutions. The company is also committed to digitally empowering its workforce to adapt to new technologies and maintain a competitive edge in modern manufacturing.
Roche to invest $50 billion
Meanwhile, Swiss pharmaceutical giant Roche revealed on Tuesday plans to invest $50 billion over the next five years, following in the footsteps of rival Novartis, as President Donald Trump's tariff war fuels uncertainty in the sector.
The U.S. is a key market for the pharmaceutical industry and accounts for more than half of Roche's pharmaceutical division's revenues.
Its Swiss competitor Novartis also announced earlier this month that it plans to invest $23 billion over the next few years.
The Trump administration is taking very different positions on pharmaceuticals, which initially benefited from exemptions in the round of tariffs announced April 2.
But last week, the Secretary of Commerce formally announced "national security" investigations into pharmaceutical imports, in addition to others on semiconductors and chip-making equipment.
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Strong presence in the United States
Roche already has more than 25,000 employees in 24 plants in eight states across the country.
In a release, Roche said the $50 billion investment was expected to create more than 12,000 new jobs, including nearly 6,500 construction jobs.
It is planning to expand and enhance U.S. manufacturing and distribution capabilities for its drug and diagnostics portfolio in Kentucky, Indiana, New Jersey, Oregon and California.
Johnson & Johnson announces a new $55 billion investment
The company said it represents a "25% increase in investment compared to the previous four years" and builds on its "already high levels of investment in the United States resulting from the passage of the Jobs and Tax Cut Act of 2017" under President Trump's leadership.
The investment also includes plans for four new manufacturing plants, starting March 21 itself in North Carolina - to produce biologics - in a $2 billion-plus facility.
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