Hours after President Donald Trump imposed 100% tariffs on pharmaceuticals with exemptions for companies building manufacturing plants in the U.S., Eli Lilly (NYSE:LLY) and Amgen (NASDAQ:AMGN) announced their latest investments in their home country.
Lilly announced the opening of its latest Lilly Gateway Labs in San Diego, California, making the site the Indiana-based drugmaker’s fourth shared innovation hub, adding to three other locations in South San Francisco and Boston.
The 82,514-square-foot facility, part of LLY’s global network of LGL sites, is expected to provide lab space for up to 15 life sciences firms, allowing them to share expertise with Lilly (NYSE:LLY).
Meanwhile, Amgen (NASDAQ:AMGN) announced plans to scale up a production site in Puerto Rico as part of a $650M investment to expand its U.S. manufacturing network.
The investment is focused on enhancing technology and boosting the company’s biologics drug production at a facility in Juncos, the California-based drugmaker said, adding that it is expected to generate roughly 750 jobs in manufacturing, construction, and other operations.
Earlier in the day, Swiss drugmakers Novartis (NVS) and Roche (OTCQX:RHHBY) made similar claims as EU pharma stocks came under pressure following Trump’s surprise decision, which is set to take effect on Oct. 1, exempting companies building new manufacturing sites in the U.S.
Roche (OTCQX:RHHBY) cited an Aug. 25 announcement to indicate that its U.S.-based Genentech unit had broken ground for a new plant in Holly Springs, North Carolina, and the company has already made a $50B pledge to expand its manufacturing and R&D footprint in the U.S.
Novartis (NVS) said that Trump’s latest tariff threat will not impact the company’s operations. “We have ongoing construction and expect to announce five new sites to be under construction before end of year,” Reuters reported, quoting a company statement.