Global Pharma Companies Rush to Invest in U.S., as Trump Administration Examines Tariff on Drug Imports

By Chika Nakayama / Yomiuri Shimbun Staff Writer

20:00 JST, April 27, 2025

Pharmaceutical companies around the world, including those in Japan, are expanding investment in the United States. While the country is the world’s largest market for pharmaceuticals, accounting for more than 40% of global sales, U.S. President Donald Trump could soon impose new tariffs on drug imports. Pharma companies are trying to move quickly to minimize the impact of tariffs by adding more production sites in the United States.

On April 22, Fujifilm Holdings Corp. announced that it had signed a manufacturing and supply agreement with major U.S. pharma company Regeneron Pharmaceuticals, Inc. Under the contract, Regeneron will receive biopharmaceuticals produced in the United States. The deal is worth $3 billion (about ¥430 billion), which is reportedly one of the largest manufacturing and supply agreements made public in the United States. The drugs will be produced at Fujifilm’s new manufacturing facility in North Carolina, which will begin operations later this year.

Fujifilm entered the biopharmaceutical development and contract manufacturing business in 2011. The company has invested about $4 billion (about ¥570 billion) in facilities and equipment in the United States, and its manufacturing facility in North Carolina will be the company’s fifth production site in the United States. Fujifilm aims to increase its biopharma sales to ¥700 billion by fiscal 2030, more than three times current sales.

While Trump’s reciprocal tariffs do not affect pharmaceuticals, his administration has already begun investigating drug imports, looking to possibly impose duties on them as well.

“This would affect exports from Japan to the United States, which could lead to a decline in revenue for pharmaceutical companies,” said Hiroaki Ueno, president of the Japan Pharmaceutical Manufacturers Association and representative director of Mitsubishi Tanabe Pharma Corp.

Western firms also hurrying

A growing number of U.S. and European pharmaceutical companies have also been announcing plans to increase investment in the United States.

F. Hoffmann-La Roche Ltd., a major pharmaceutical company based in Switzerland, said earlier this month it will invest $50 billion (about ¥7.2 trillion) in the United States over the next five years. In that same time span, Novartis AG will invest $23 billion (about ¥3.3 trillion) to build research and production facilities in the country.

Eli Lilly and Co., a major U.S. pharmaceutical company, will build a new manufacturing facility in the United States. Chief Executive Officer David Ricks said that this would help increase exports of domestically produced pharmaceuticals to overseas markets and benefit the United States.

Since the U.S. drug market is expected to grow, other pharmaceutical companies may also consider boosting investment in the United States. However, some firms are less eager to review their production systems due to the large amount of time and effort involved.

“Pharmaceuticals is not the kind of business where you can easily change your manufacturing sites,” said Naoki Okamura, president of Astellas Pharma Inc., at a press conference on Friday. “Changing the current supply chain is not a practical solution.”