ELKTON, Va. — October 20, 2025 (Reuters) — Global pharmaceutical leader Merck & Co., Inc. (NYSE: MRK) has officially begun construction on a $3 billion pharmaceutical manufacturing facility in Elkton, Virginia. The investment marks a major milestone in Merck’s ongoing $70 billion commitment to expanding its U.S. manufacturing and R&D footprint, reinforcing domestic production amid global supply chain realignments and shifting trade dynamics.
The Elkton project represents one of Merck’s largest single-site expansions in the United States and reflects a growing trend among multinational drugmakers to bring production closer to home. In the wake of federal calls to strengthen domestic pharmaceutical supply chains, companies like Merck are taking aggressive steps to ensure resilience and capacity within the U.S. market.
Virginia Governor Glenn Youngkin praised the company’s latest investment, noting the significant scale of job creation associated with the new facility.
“Merck's site in Virginia is expected to generate 500 jobs, a significant increase beyond the original scope of a $2 billion investment and 300 jobs,”
said Governor Youngkin.
The project not only boosts local employment but also positions Virginia as a growing hub for advanced pharmaceutical manufacturing. The Elkton site will focus on biologics and small molecule drug production, supporting the company’s expanding oncology and vaccine portfolio, including next-generation versions of Keytruda, Merck’s blockbuster cancer therapy.
The investment comes as part of a broader manufacturing expansion strategy that includes an additional $3 billion commitment to enhancing Merck’s biologics and small molecule manufacturing sites nationwide. The company also plans to invest more than $3.5 billion at its Rahway, New Jersey headquarters, bolstering research, pilot manufacturing, and sustainability efforts.
Earlier this year, Merck opened a $1 billion facility in North Carolina, dedicated to vaccine and biologics production. The company also revealed plans to invest $1 billion in a new Delaware plant to support biologics manufacturing and production of Keytruda, potentially creating over 4,500 jobs across multiple sites.
.jpg)
Industry analysts point out that these expansions reflect a strategic response to the global shift toward localized manufacturing and the need to mitigate risks from tariffs and supply chain disruptions. Merck’s aggressive U.S. investment strategy mirrors a broader pharmaceutical industry trend — in 2025 alone, at least 14 major drugmakers announced plans to expand or build new U.S. facilities to safeguard access to critical medicines.
The Elkton facility will significantly strengthen Merck’s ability to produce both active pharmaceutical ingredients and finished medicines domestically, a move expected to enhance both national health security and production flexibility.
Merck’s $3 billion Virginia investment underscores its confidence in long-term U.S. demand for advanced biologics, as well as the company’s commitment to workforce development and innovation in high-skill manufacturing. Local officials anticipate a strong economic ripple effect, with new housing, infrastructure, and supply chain investments expected to follow the project’s buildout.
The new facility’s construction is already underway, and production is expected to begin later this decade once regulatory and operational milestones are met.
Headquartered in Rahway, New Jersey, Merck & Co., Inc. is one of the world’s leading biopharmaceutical companies, developing innovative medicines and vaccines in oncology, infectious diseases, immunology, and animal health.
For more information, visit www.merck.com.
Originally reported by Reuters.
.webp)
