Merck Announces $70 Billion U.S. Manufacturing and R&D Expansion

Merck & Co., Inc. announced on Monday a sweeping expansion of its U.S. operations, pledging more than $70 Billion in investments to scale up its manufacturing and research capabilities across multiple states. The move cements the pharmaceutical giant’s long-term commitment to domestic innovation and production, positioning the United States as a global leader in biopharmaceutical manufacturing.

The expansion will encompass major new projects in Virginia, Delaware, North Carolina, and Kansas, as well as a multibillion-dollar investment in Merck’s Rahway, New Jersey headquarters, according to the company’s updated U.S. Capital Investment Fact Sheet (Q4 2025).

“Beginning in 2025, Merck will invest more than $70 billion to expand domestic manufacturing and R&D,” the company said, adding that this figure excludes any future mergers or acquisitions. By 2030, Merck expects to have the capability to manufacture all of its small molecule products within the U.S.

Four-State Expansion Highlights

• Elkton, Virginia: A $3 billion, 400,000-square-foot pharmaceutical center of excellence is under construction, expanding both Active Pharmaceutical Ingredient (API) and drug product manufacturing capacity. The site will create roughly 500 full-time manufacturing jobs and 8,000 construction roles, according to Virginia Governor Glenn Youngkin. This represents an increase from the company’s original $2 billion plan announced earlier in the year.
• Wilmington, Delaware: Merck has committed over $1 billion to build a new biologics plant that will produce the cancer immunotherapy Keytruda for U.S. patients beginning in 2026. The facility is expected to create over 4,500 jobs and could expand further to add another 1,500 full-time positions and 26,000 construction jobs. This marks the first time Keytruda will be manufactured domestically for American patients.
• Durham, North Carolina: Merck opened a $1 billion biologics facility earlier this year, creating 400 full-time roles and nearly 4,000 construction jobs. The state remains a cornerstone of Merck’s vaccine and biologics production, with more than $2.1 billion invested since 2018.
• De Soto, Kansas: The company is investing $895 million in a 200,000-square-foot manufacturing facility to expand vaccine and biologics capacity for its Animal Health division. Construction will create 2,500 jobs, with commercial operations expected to start by 2030 and 200 full-time positions to follow.

Additionally, Merck confirmed plans to invest $3 billion in U.S. biologics and small-molecule manufacturing sites and $3.5 billion in its Rahway headquarters, adding about 1,000 research and clinical manufacturing roles.

Boost to U.S. Pharmaceutical Workforce and Supply Chain

Since 2017, Merck has invested over $12 billion in U.S. manufacturing and $81 billion in domestic R&D, supporting tens of thousands of American jobs. The company projects that its upcoming initiatives will create more than 8,500 full-time U.S. jobs — a 35% increase since 2018 — and generate upwards of 48,000 construction opportunities from 2025 to 2029.

Merck’s domestic manufacturing network already accounts for over 85% of vaccine drug substance production and 98% of U.S. vaccine formulation and packaging. The company’s expansion will further localize its supply chain and reduce dependence on overseas production.

Policy Context and Industry Trends

Merck’s announcement follows a broader trend of global pharmaceutical companies ramping up U.S. investments amid government efforts to strengthen domestic drug production. Since 2020, successive administrations — including that of President Donald Trump, who first urged companies to “make medicines in America” — have pushed for reduced reliance on foreign manufacturing.

In 2025 alone, at least 14 major drugmakers, including Roche, Eli Lilly, Johnson & Johnson, and Merck, unveiled plans to expand their U.S. presence to mitigate tariff pressures, diversify supply chains, and reassure investors of manufacturing resilience.

A Renewed Commitment to U.S. Innovation

“By producing KEYTRUDA in the U.S., as well as numerous future biologic products, we are reaffirming our commitment to a strong U.S. footprint that supports the President’s economic agenda,” the company said.

With these investments, Merck aims not only to meet rising global demand but also to strengthen America’s position as a hub for life sciences innovation and biopharmaceutical self-sufficiency.

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