Swiss pharmaceutical giant Roche announced on Tuesday (April 22) that they will be investing $50 billion in the United States over the next five years, creating over 12,000 new job opportunities. This massive investment is a response to the U.S. tariff policies impacting businesses, as reported by Reuters. On the same day, the Trump administration was reportedly planning to lower drug prices domestically.
As the Trump administration seeks to boost domestic manufacturing, various pharmaceutical companies have been unveiling investment plans in response to the tariff policies. Swiss pharmaceutical company Novartis announced earlier this month a $23 billion investment in the U.S., while Eli Lilly and Johnson & Johnson also recently announced significant investment plans.
Roche’s CEO, Thomas Schinecker, emphasized the company’s commitment to the U.S., highlighting their 24 locations and 25,000 employees in the country. Of the 12,000 new positions Roche plans to create, nearly 6,500 will be in construction, 1,000 in new facilities, and expansions.
Schinecker stated in a press release, “We are investing $50 billion over the next five years to lay the foundation for the next era of innovation and growth, benefiting American and global patients.”
The U.S. is an important market for Roche, with nearly 48% of their sales in the country in 2024 attributed to drugs like Xolair for asthma and food allergies, and Ocrevus for multiple sclerosis treatment.
A Roche spokesperson mentioned, “Our investment aligns with the Swiss government and is part of the ongoing discussions between the U.S. and Switzerland.” Roche plans to expand manufacturing and distribution centers in Kentucky, Indiana, New Jersey, and California, although some projects had been previously announced.
In the midst of warnings about a 31% tariff on Swiss exports to the U.S., Roche mentioned that once the new facilities are operational, the quantity of drugs exported from the U.S. will surpass imports.
Roche stated that more details on their investment strategy will be provided in the coming weeks.
Last week, the Trump administration initiated an investigation into imported drugs, as part of its tariff imposition plans on the industry. According to data from the United Nations trade database, the U.S. imported nearly $213 billion worth of drugs last year, almost three times the $73 billion in 2014.
On the same day Roche announced their new large-scale investment plan, sources familiar with the matter informed Reuters that the pharmaceutical industry had received warnings that the Trump administration is considering aligning U.S. drug prices with lower prices in other developed countries.
The U.S. has long been criticized for high drug prices, ranking among the highest in the world. Despite having healthcare insurance, many Americans still face significant out-of-pocket drug expenses. According to a study commissioned by the U.S. Department of Health and Human Services from RAND Health Care, in 2022, branded drug costs in the U.S. were about 3.2 times higher than in other developed countries.
President Trump aims to narrow this gap. Five years ago, he proposed an international reference pricing plan that was expected to save taxpayers over $85 billion in seven years, reducing annual drug spending in the U.S. by over $400 billion. However, this plan was rejected by the courts.