On October 20th, the pharmaceutical company Merck & Co., based in Rahway, New Jersey, announced that its newly inaugurated factory in Elkton, Virginia, with an investment of $3 billion, will construct a state-of-the-art drug manufacturing facility spanning 400,000 square feet.
This project marks another milestone for Merck following its expansions in North Carolina, Delaware, and Kansas. Merck has committed to investing over $70 billion this year to expand its domestic production and research and development initiatives in the United States.
“This is an important milestone for Merck, for the state of Virginia, for the pharmaceutical industry in the United States, and most importantly, for the patients we serve,” said Robert M. Davis, Chairman and CEO of Merck, emphasizing that this investment will drive the provision of innovative treatment solutions for patients.
The Elkton facility in Virginia, with an 85-year history, will introduce an advanced pharmaceutical “Excellence Center” through this expansion. The center will focus on active pharmaceutical ingredients and drugs, supporting the production and testing of small molecule drugs, potentially creating over 500 full-time positions and 8,000 construction jobs.
The project in Virginia has received a warm welcome from Governor Glenn Youngkin, who stated, “This signifies a significant advancement for the life sciences sector in the United States and Virginia.”
Since May 2025, President Trump has introduced a series of policies prompting pharmaceutical companies to relocate production facilities to the United States, strengthening the domestic drug supply chain and reducing drug prices. By imposing a 100% tariff on imported drugs, streamlining domestic pharmaceutical plant construction regulations, and establishing the Strategic Active Pharmaceutical Ingredient Reserve (SAPIR), he has encouraged companies to produce critical drugs in the United States.
Simultaneously, President Trump has advocated for a most-favored-nation drug pricing policy to ensure drug prices are comparable to other developed countries and directed the government to address unfair pricing practices. These measures have formed a comprehensive strategy to safeguard national health security and enhance domestic investment and production capacity in the pharmaceutical industry.
Jay Timmons, President and CEO of the National Association of Manufacturers (NAM), pointed out that Merck’s announced investment demonstrates the effectiveness of the H.R.1 (The Big and Beautiful Bill) in promoting economic growth policies. “The Congress’ enactment of competitive tax policies provides manufacturers with tax certainty for planning, investing, recruiting, and leading the market,” Timmons emphasized. “Manufacturers will continue to collaborate with the government to advance a comprehensive manufacturing strategy, contributing not only to business success but also to overall economic development in the United States.”
Established in 1891, Merck & Co., Inc., a leading global pharmaceutical company specialized in cancer immunotherapy, vaccines, and diabetes medications research and development, boasts a 134-year history by 2025. Their flagship products include Keytruda and Gardasil.
Just in this year alone, Merck has announced investments nearing $6 billion in North Carolina, Delaware, Kansas, and Virginia, expecting to create over 1,600 new job opportunities in the United States.
Furthermore, Merck plans to invest over $3.5 billion at its headquarters in Rahway, New Jersey, creating approximately 1,000 research and clinical manufacturing positions.
The company’s efforts nationwide in the United States will further strengthen domestic drug and vaccine production and distribution to protect patients, anticipating the creation of over 48,000 construction-related job opportunities by 2029.