ELKTON, Virginia – In a significant move to strengthen its U.S. manufacturing footprint global drugmaker Merck & Co. has begun construction on a new $3 billion pharmaceutical manufacturing facility in Elkton, Virginia. This project is a key part of the company’s broader commitment to invest more than $70 billion in U.S. manufacturing and research and development.
The expansion reflects a wider trend of pharmaceutical companies increasing their domestic production capacity to mitigate supply chain risks and respond to the evolving economic and policy landscape.
Scaling Up Investment and Job Creation
The Elkton site represents a substantial scaling of Merck’s original plans. Virginia Governor Glenn Youngkin highlighted that the project has grown from an initial scope of a $2 billion investment creating 300 jobs to the current $3 billion investment expected to generate 500 jobs.
This expansion underscores the project’s strategic importance and the company’s confidence in the local workforce and infrastructure.
Part of a Broader National Strategy
The Virginia facility is not an isolated project. Merck announced it will invest an additional $3 billion in other U.S. biologics and small molecule manufacturing sites, plus over $3.5 billion at its headquarters in Rahway, New Jersey.
This announcement follows other recent major investments by the company, including:
- A $1 billion plant in Delaware for biologics and its blockbuster cancer drug, Keytruda.
- A $1 billion facility in North Carolina that opened in March.
These collective investments position Merck as a leading force in the reshoring of advanced pharmaceutical manufacturing to the United States, aiming to create a more resilient and secure supply chain for critical medicines.
A Trend in Pharmaceutical Reshoring
Merck’s move aligns with a broader industry shift. In 2025, at least 14 major global drugmakers announced plans to expand their U.S. manufacturing presence. This trend is driven by the desire to reduce dependency on international supply chains, navigate tariff environments, and ensure a reliable drug supply for the American market.
Frequently Asked Questions (FAQ).
1. What is Merck building in Virginia?
Merck is constructing a new $3 billion pharmaceutical manufacturing facility in Elkton, Virginia.
2. How many jobs will the new plant create?
The facility is expected to generate 500 new jobs in the region.
3. Is this part of a larger investment plan?
Yes. This plant is part of Merck’s commitment to invest more than $70 billion in U.S. manufacturing and R&D. The company is also investing billions more in its New Jersey headquarters and other sites in Delaware and North Carolina.
4. Why are drugmakers like Merck expanding in the US?
Pharmaceutical companies are boosting U.S. investment to strengthen domestic supply chains, reduce reliance on imported ingredients, and mitigate risks associated with global trade and tariffs.
5. What is the significance of this investment?
It represents a major scaling of domestic manufacturing capacity for critical pharmaceuticals, enhancing the U.S.’s ability to produce its own medicines and creating high-skilled jobs.
6. What is Keytruda?
Keytruda is Merck’s blockbuster immunotherapy drug used to treat various types of cancer. The company is also investing in a separate Delaware facility to boost its U.S. production.
