March 11 (Reuters) - Merck ( MRK ) said on Tuesday it
has opened a $1-billion facility at its North Carolina site, the
latest drugmaker to boost its U.S. manufacturing amid President
Donald Trump's tariff threats.
Trump has been piling pressure on drugmakers since taking
office to move medicine production to the U.S., and has
threatened to impose 25% tariff on pharmaceutical imports.
In February, Trump met with the CEOs of major drugmakers to
discuss industry concerns such as tariffs on drug imports.
Eli Lilly ( LLY ) has since announced plans to invest at
least $27 billion to build four new manufacturing plants in the
U.S.
Pfizer ( PFE ) has also said it might move overseas
manufacturing to its existing plants in the U.S.
Merck ( MRK ) expects to invest $8 billion in the U.S. by 2028. It
has already spent more than $12 billion since 2018 to expand
domestic manufacturing, research and development capabilities,
and create new jobs in the U.S.
The company's manufacturing footprint is slightly heavier
outside of the U.S., Chief Financial Officer Caroline Litchfield
said in a conference earlier this month.
"As we all try to understand what tariffs may come, our
company is focused on the investments that we're making in this
country to support our pipeline," Litchfield said.
Merck ( MRK ) has facilities in countries such as Ireland and
Singapore, according to the company's website.
Other sectors with large production facilities outside the
U.S. have also implemented counter measures such as potential
price hikes, changes in sourcing locations and new domestic
plants to brace for potential tariffs.
(Reporting by Sriparna Roy in Bengaluru; Editing by Shinjini
Ganguli)