NEWS Eli Lilly announced a $27 billion investment to build four new manufacturing facilities across the U.S. over the next five years, responding to concerns raised by the President about tariffs. Pfizer CEO Albert Bourla indicated that his company is prepared to move its manufacturing operations to the U.S. if necessary, during his remarks at the 45th TD Cowen Annual Health Care Conference in Boston. In a discussion with analyst Steve Scala on Monday, Bourla noted that Pfizer operates 13 production plants in the U.S., likely making it the company with the largest manufacturing network. He highlighted several of these facilities as “mega sites” focusing on the production of antibodies and sterile injectables. Bourla explained that if potential tariffs arise, Pfizer can swiftly shift production from international sites to U.S. facilities as needed. His comments followed a recent meeting with President Trump and other pharmaceutical leaders, where optimism about potential regulatory changes under the new administration was dampened by Trump’s warning of tariffs on companies that manufacture overseas. The President also did not commit to reducing the pricing negotiation program outlined in the Inflation Reduction Act. Analysts at Jefferies have identified the uncertainty surrounding the President’s tariffs as a significant concern for the pharmaceutical industry. They noted that while large companies like Gilead, Amgen, and Vertex may withstand these pressures, smaller firms are likely to face challenges. Recently, Trump suggested implementing additional tariffs of up to 25% on imported pharmaceuticals, which could rise substantially over the next year. Earlier this year, he also announced tariffs on imports from Canada, Mexico, and China, citing an “extraordinary threat” without clear justification. Analysts have pointed out that the tariffs on China, in particular, are problematic for the biopharma sector as companies seek new drug candidates there. These tariffs, effective since March 4, have prompted Eli Lilly’s substantial investment in domestic manufacturing, which is expected to create around 3,000 new jobs for engineers and scientists, along with 10,000 construction opportunities. Pfizer ready to relocate manufacturing if Trump follows through on tariff threats
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