Amgen announces a $650M expansion in Puerto Rico amid Trump’s new pharmaceutical tariffs. Analysis on the investment’s impact on jobs, US manufacturing, and AMGN stock.
In a significant move for the U.S. pharmaceutical industry, biotech giant Amgen (AMGN) announced a $650 million expansion of its manufacturing operations on Friday. The investment will boost production capacity at the company’s biologics manufacturing facility in Juncos, Puerto Rico, and is expected to create approximately 750 new jobs.
The announcement comes just a day after former President Donald Trump stated on Truth Social that the U.S. would impose a 100% tariff on branded and patented pharmaceutical products starting October 1, unless manufacturers are actively building plants in the country.
Strategic Investment in U.S. Manufacturing Footprint
Amgen’s latest investment appears to align with the push for increased domestic drug manufacturing. The company emphasized its longstanding commitment to U.S.-based operations, noting it has invested more than $40 billion in American manufacturing and research and development since late 2017.
This Puerto Rico expansion is part of a broader wave of recent investments by the company. Earlier this year, Amgen announced a $900 million expansion of its Ohio facility, which followed a late-2024 announcement of a $1 billion project to build a second drug substance manufacturing plant in North Carolina.
Market and Analyst Reaction
Following the news, market sentiment on platforms like Stocktwits saw a shift for AMGN stock from ‘bullish’ to ‘neutral’, though message volume remained high, indicating significant trader interest.
Analysts suggest that large-cap pharmaceutical companies like Amgen may be well-positioned to weather potential tariffs. Akash Tewari, an analyst at Jefferies, noted that the tariffs might not have a “material impact” on major pharma firms, as many have already been actively establishing U.S. manufacturing facilities. This view was echoed by some retail investors on Stocktwits, who suggested Amgen’s latest investment would likely shield it from the proposed tariffs.
Despite the positive expansion news, AMGN stock is up 4% year-to-date but down about 15% over the past 12 months, reflecting broader market challenges for the sector.
A Broader Industry Trend
Amgen’s decision highlights a continuing trend of pharmaceutical companies strengthening their U.S. manufacturing networks. This shift is driven by a combination of factors, including supply chain resilience, government policy signals, and strategic planning.
The expansion in Puerto Rico, a U.S. territory, effectively counts toward domestic manufacturing, helping companies navigate the evolving regulatory and trade landscape while securing the production of critical biologic medicines for the future.