Roche, the Basel-based pharmaceutical leader, has committed to investing $50 billion in manufacturing and research infrastructure in the United States over the next five years. This bold move positions Roche alongside various other pharmaceutical companies that are ramping up capital expenditure in anticipation of potential tariffs from the Trump administration.

While the administration is diligently working out the specifics regarding the application of tariffs on pharmaceuticals, industry experts suggest that an increase in domestic manufacturing could provide a viable path for companies to circumvent these tariffs. Roche’s commitment to enhancing its U.S. operations aligns with a broader trend among drugmakers focusing on local production.

Currently, Roche operates 13 manufacturing and 15 research and development sites across the U.S., employing over 25,000 individuals. Its American footprint includes Genentech, a subsidiary based in South San Francisco, and Roche Diagnostics, which has its North American headquarters in Indianapolis. This extensive network underscores Roche’s significant presence in the U.S. market.

The newly announced capital investments will expand various existing sites and introduce new facilities. Among the planned developments are a gene therapy manufacturing facility in Pennsylvania and a glucose monitor manufacturing site in Indiana. Additionally, Roche will establish a cutting-edge R&D center in Massachusetts, focusing on artificial intelligence and serving as a crucial hub for research into cardiovascular, renal, and metabolic health. This 30,000-square-foot facility will be situated at Harvard’s Enterprise Research Campus in Boston, highlighting Roche’s commitment to innovation and collaboration in one of the world’s foremost academic hubs.

Moreover, a sizable 900,000-square-foot manufacturing center dedicated to weight loss medications is on the horizon, although its specific location has yet to be disclosed. Roche’s recent strategic acquisitions, including the $2.7 billion purchase of Carmot Therapeutics and a $1.65 billion partnership with Zealand Pharma, exemplify its dedication to developing advanced obesity treatments. Roche will handle the manufacturing and supply of petrelintide, a newly engineered peptide aimed at weight management.

Upon the completion of these new and expanded facilities, Roche anticipates that it will export more medications from the U.S. than it will import, although this projection will materialize over a longer-term timeline due to the complexities of constructing pharmaceutical infrastructure. Interestingly, Roche has noted that its diagnostics division currently maintains an export surplus in the U.S.

CEO Thomas Schinecker stated, “Roche is a Swiss company with a strong heritage in more than 130 countries globally. Today’s announced investments underscore our long-standing commitment to research, development, and manufacturing in the U.S.” This sentiment reflects a clear strategy of not only bolstering domestic operations but also reinforcing Roche’s global reputation as an innovator in the pharmaceutical industry.

Roche’s substantial investments come on the heels of similar commitments from industry giants. Eli Lilly, for example, announced plans to double its capital investments in the U.S. to $50 billion. Merck has unveiled a new $1 billion vaccine manufacturing site in North Carolina, while Johnson & Johnson plans to invest over $55 billion in U.S. manufacturing and R&D over the next four years. Novartis, too, recently declared intentions to invest $23 billion in enhancing its U.S.-based infrastructure.