(Reuters) -Regeneron Pharmaceuticals said on Tuesday it has signed a deal worth more than $3 billion with contract drug developer Fujifilm Diosynth, potentially doubling its U.S. manufacturing capacity and bringing its total investments in the country to over $7 billion.
Major U.S. drugmakers, including Eli Lilly (NYSE:LLY) and Johnson & Johnson (NYSE:JNJ), have recently announced additional investments in their U.S. production as they prepare to deal with potential drug import duties from President Donald Trump’s administration.
Last week, the U.S. opened a national security investigation into pharmaceutical companies to show why the country needs tariffs to boost domestic manufacturing. Rates and timing remain uncertain, but the industry has been lobbying for phased-in tariffs.
Under the terms of the deal, Tokyo-based Fujifilm Diosynth’s facility in Holly Springs, North Carolina will manufacture and supply drug products for Regeneron (NASDAQ:REGN)’s biologic medicines for a span of 10 years. The facility is expected to be operational later this year.
Regeneron is also expanding its Tarrytown, New York-based facility and building a separate facility in the state to expand capacity to fill injection pens - a process known as fill-finish.
Its ongoing and planned investments in New York and North Carolina are expected to exceed $7 billion, Regeneron said, adding that it has added more than 7,000 jobs in the United States over the last five years.