Merck & Co (known as MSD outside the U.S. and Canada) has officially begun construction on its ambitious $1 billion biologics centre of excellence, Merck Wilmington Biotech, located in Delaware, U.S. This major investment underscores the company’s growing commitment to biologics innovation, aiming to strengthen the production of cutting-edge therapies, including antibody-drug conjugates (ADCs).

The expansive 470,000ft² facility will house advanced manufacturing, laboratory, and warehouse operations, serving as a critical piece in MSD’s global production network. By localizing more of its manufacturing capacity within the U.S., MSD hopes to better meet the rising demand for vital medicines, particularly its blockbuster cancer immunotherapy Keytruda (pembrolizumab), and bring these therapies closer to American patients.

This strategic development positions the Delaware site to become MSD’s future U.S. production hub for advanced therapies, anchoring the company’s long-term growth in biologics. The project is part of a broader push to diversify MSD’s product pipeline and accelerate access to innovative treatments across the country.

The new centre is projected to generate over 500 full-time positions once operational and support nearly 4,000 construction jobs during its build-out phase. According to company timelines, the laboratory segment of the project is expected to be fully operational by 2028, while production of investigational compounds is slated to begin by 2030.

In addition, MSD is already eyeing potential site expansions that could deliver even greater economic benefits to the region. If realized, these expansions could add another 1,500 full-time positions and approximately 26,000 construction jobs, further cementing the facility’s importance as an employment engine for Delaware.

Strategically located at the Chestnut Run Innovation & Science Park (CRISP), the Merck Wilmington Biotech site is positioned to play a key role in advancing the city’s biotech sector. The site’s proximity to renowned universities in Delaware and Pennsylvania is expected to provide a robust talent pipeline, enabling MSD to recruit top-tier scientific and technical professionals.

Additionally, its location near MSD’s existing facilities in Pennsylvania and New Jersey is anticipated to create valuable synergies, offering opportunities for both current and future employees across the regional network.

MSD chairman and CEO Robert Davis emphasized the significance of the investment, stating:

“The Merck Wilmington Biotech site represents our continued commitment to growing our investments in US manufacturing and has the potential to create thousands of high-paying American jobs while ensuring that we can produce and distribute products close to patients right here in the US.”

The Delaware expansion forms part of MSD’s larger U.S. investment strategy, bolstered in part by the 2017 Tax Cuts and Jobs Act. Since then, the company has invested more than $12 billion into strengthening its U.S. manufacturing and research capabilities.

Notable projects under this strategy include the recently completed $1 billion vaccine production facility in Durham, North Carolina, and a planned $3.5 billion investment into biologics and small-molecule manufacturing facilities, which are expected to generate an estimated 650 additional full-time jobs.

Altogether, these initiatives are forecasted to create over 37,600 construction-related jobs by 2028, underscoring MSD’s substantial contribution to the nation’s biopharmaceutical infrastructure and workforce development.

This new biologics centre not only reaffirms MSD’s leadership in pharmaceutical manufacturing but also highlights the company’s role in advancing the U.S. life sciences sector amid rising global competition.

The announcement, “Construction begins on MSD’s $1bn biologics centre in Delaware, US,” was originally created and published by Pharmaceutical Technology, a GlobalData-owned brand.

Originally reported by Global data in Yahoo Finance.