As pharma companies big and small play up their U.S. investment plans during the second Trump administration, the particulars of one project at AbbVie are coming into focus.
Tuesday, the Illinois pharma giant revealed plans to spend $195 million to expand its manufacturing presence in North Chicago. Specifically, the company plans to begin construction on a facility to produce active pharmaceutical ingredients in the fall and have the site be fully operational in 2027.
The plant, which is part of the company's $10 billion plan to invest in the U.S., will help the drugmaker produce current and next-gen therapies in neuroscience, immunology and oncology, AbbVie said in an Aug. 12 release.
AbbVie already employs more than 6,000 people at 11 manufacturing sites in the U.S., and the new expansion is expected to add to that total by an undisclosed amount. In Illinois, the company employs more than 11,000 people across all job functions.
Several months ago, AbbVie executives laid out their plan to spend $10 billion on U.S. capital investments by 2035. While AbbVie didn't lay out all of the specifics at the time, the company did reveal its intention to build four new U.S. production sites as part of the investment campaign.
"Over the next decade, AbbVie will expand production of API, drug product, peptides and medical devices in the U.S. to support future medical breakthroughs," AbbVie CEO Robert Michael said in a statement Tuesday. "This is an important step to maintain U.S. leadership in pharmaceutical innovation and deliver next-generation medicines that make a remarkable impact on patients' lives."
AbbVie's project comes as drugmakers of all sizes race to shore up their domestic production operations. Besides AbbVie's $10 billion commitment, other large pharmas such as Johnson & Johnson, Eli Lilly, Novartis, Roche and AstraZeneca have each pledged to spend tens of billions to grow their U.S. footprints in the coming years.
The pledges have rolled in as President Donald Trump and members of his administration have repeatedly threatened to impose tariffs on pharmaceuticals imported into the U.S. Most recently, Trump said in early August that pharma tariffs would be announced "within a week or so," with the rates starting small but eventually reaching 250%.