1. Roche stated that this investment will create more than 12,000 jobs - 1,000 jobs for the company and the rest will support new manufacturing capacity in the United States.
2. Pharmaceutical companies are striving to enhance their presence in the United States as President Donald Trump threatens to end import tax exemptions for the industry.
3. Roche's CEO, Thomas Schinecker, stated in a declaration that this new investment demonstrates the company's 'long-term commitment to research, development, and manufacturing in the United States.'
Swiss pharmaceutical giant Roche announced on Tuesday that it will invest $50 billion in the United States over the next five years, amid concerns about the impact of new tariffs that could be applied to foreign pharmaceutical products by the White House.
Roche stated that this investment will create more than 12,000 jobs - 1,000 jobs for the company and the remainder to support new manufacturing capacity in the United States. The company reported that it has hired over 25,000 people in the United States.
Roche's stock fell 1.1% at 8:39 AM in London.
The pharmaceutical giant will invest money in creating new modern research and development (R&D) facilities, while also strengthening and expanding manufacturing facilities in Indiana, Pennsylvania, Massachusetts, and California. A new R&D facility in Massachusetts will be used for AI research and act as a research center for cardiovascular, kidney, and metabolic treatments.
This funding package will also be used to build a new 900,000 square foot manufacturing center at an undisclosed location to support Roche's 'expanding next-generation weight loss drug portfolio.'
Roche stated that after completing investments in new manufacturing capacity, the company will export more drugs from the United States than it imports.
Pharmaceutical companies are striving to enhance their presence in the United States as President Donald Trump threatens to end import tax exemptions for the industry.
'We will soon announce significant tariffs on pharmaceuticals,' he said earlier this month.
Roche's investment follows similar moves by major competitors. Earlier this month, Switzerland's Novartis announced plans to invest $23 billion in building and expanding 10 facilities in the United States, in a move they said will create more than 4,000 jobs.
British pharmaceutical giant AstraZeneca announced last month that it will invest $2.5 billion to create a center in Beijing. However, CEO Pascal Soriot told CNBC at the time that AstraZeneca remains 'very committed to the United States,' where the company has two 'very large' research and development centers.
In a statement on Tuesday, Roche's CEO Thomas Schinecker said the company's new $50 billion investment demonstrates 'the company's long-term commitment to research, development, and manufacturing in the United States.'
'We are proud of our 110-year legacy in the United States, which is a key driver of jobs, innovation, and intellectual property creation in the United States, across both our Pharmaceuticals and Diagnostics Divisions,' he said. 'Our $50 billion investment over the next five years will lay the groundwork for our next era of innovation and growth, benefiting patients in the United States and around the world.'
PLEASE SUPPORT US BY LIKING, SHARING, COMMENTING, FOLLOWING
SINCERE THANKS!