Roche is deepening its manufacturing footprint in the US with plans to invest more than $700m in a new production facility in Holly Springs, North Carolina, aimed at supporting its pipeline of next-generation obesity drugs.
The new site will manufacture biologics for Genentech, a member of the Roche group, and is expected to create over 400 manufacturing jobs once operational. In a company statement, Roche noted that the initial investment may increase in the future, “based on business needs and the US policy environment”.
Go deeper with GlobalData
This announcement follows Roche’s pledge last month to invest $50bn in the US over the next five years. That broader initiative aims to create more than 12,000 new jobs across the country, with a long-term goal of transforming the US into a net exporter of Roche-manufactured medicines.
The pharmaceutical has cited the need to build capacity for both existing therapies and a growing pipeline of biologics and precision medicines.
Roche’s move comes amid a wave of reshoring activity in the US across the pharmaceutical sector. In recent months, several multinational drugmakers have announced large-scale investments in US-based manufacturing and R&D infrastructure.
Novartis said last month that it would invest $23bn in the US over five years while Eli Lilly and Johnson & Johnson (J&J) unveiled plans to spend $27bn and $55m, respectively, to boost domestic production.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThese investments reflect growing uncertainty around international supply chains and rising pressure from the US Government to localise pharmaceutical production. President Donald Trump’s administration has introduced a 10% blanket tariff on imported goods, which excludes finished drug products. However, the administration has launched Section 232 investigations into pharmaceutical imports, which could enable future tariffs on foreign-made active pharmaceutical ingredients and other medical supplies.
In addition to trade actions, the White House is pursuing sweeping changes to drug pricing. On 11 May, President Trump announced plans for an executive order that would tie US drug prices to those paid in other countries. The “most favoured nation” model would limit the federal government’s drug reimbursement rates to the lowest global prices available. Trump claimed the measure could reduce US prescription drug costs by 30% to 80%, though no implementation timeline was provided.
Beyond the US, Roche is also investing in its global manufacturing network. Last week, the company announced a 2.04bn yuan ($282m) investment to build a new production site in Shanghai for its eye drug Vabysmo (faricimab). That facility is expected to be completed by 2029 and will enable Roche to meet regulatory requirements for local manufacturing in China.
During the company’s Q1 2025 earnings, CEO Thomas Schinecker emphasised that domestic production is becoming essential for market access in several key countries.
