Merck invests $1B in new US drug factory
Merck & Co. is spending more than $1 billion to construct a new plant in Delaware to make U.S. supplies of its best-selling cancer medicine Keytruda. This is part of a larger strategy to increase domestic production and cut dependence on foreign manufacturing, particularly in the face of possible pharmaceutical import tariffs. Today, much of Keytruda’s manufacturing occurs in Ireland and Singapore.
The new plant, on Merck’s Chestnut Run campus, will be up and running by 2030, with labs ready by 2028. It will generate about 500 full-time jobs and 4,000 construction jobs, greatly benefiting the local economy. Keytruda, which brought in $29.5 billion in sales in 2024—about half of Merck’s overall revenue—is a vital asset to the company, particularly as it nears patent expiration in 2028.
Merck has invested more than $12 billion in U.S. capital since 2018 and will further add $8 billion by 2028. The Delaware facility is the latest addition to Merck’s list of U.S.-based expansions, following on the heels of a recently commissioned $1 billion vaccine plant in North Carolina.
This new investment also prepares Merck for a projected $200 million in additional costs associated with import tariffs. Through strengthening its U.S. manufacturing presence, Merck seeks to maintain uninterrupted drug supply while protecting itself from future trade-related costs. The Delaware facility will play an important role in sustaining Keytruda’s manufacturing and driving the company’s long-term growth as it faces impending market challenges.
