Merck to invest $1 billion in U.S. plant for cancer drug
Merck is making a $1 billion bet on American manufacturing with plans to build a major production facility in Wilmington, Delaware. The 470,000-square-foot site will be dedicated to producing Keytruda, Merck’s blockbuster cancer immunotherapy drug, for U.S. patients. This marks the company’s first domestic site devoted to Keytruda production.
The facility is expected to be operational by 2028 and will create over 500 full-time jobs along with approximately 4,000 construction roles. The investment is part of Merck’s broader $12 billion commitment to expanding its U.S. manufacturing presence since the 2017 Tax Cuts and Jobs Act.
“This is part of a significant investment to not only bring the world’s best-selling medicine closer to the American patients who rely on it, but to also establish a home for our biologics portfolio of products,” Merck said in a statement.
The move comes as President Trump signals plans to impose tariffs on pharmaceuticals, including imported ingredients. While Merck didn’t cite tariffs as the reason behind the investment, the timing aligns with broader efforts from U.S. companies to onshore operations. IBM, for example, recently pledged $150 billion for domestic manufacturing.
Merck CEO Robert M. Davis emphasized the site’s importance in building biopharma infrastructure at home. “The Merck Wilmington Biotech site represents our continued commitment to growing our investments in U.S. manufacturing,” he said, noting the project’s potential to bolster job creation and enhance supply chain resilience.
The new facility is also poised to boost Wilmington’s biotech sector and further the reshoring momentum encouraged by the White House.
