Jamie Spencer
Roche announced on Tuesday that it will invest $50 billion in the United States over the next five years, a move expected to create more than 12,000 new jobs. This significant investment comes in response to the tariff policies of the Trump administration, which has been pushing for an increase in domestic manufacturing.
Expansion of Manufacturing and Distribution Centers
Roche plans to expand its manufacturing and distribution centers in Kentucky, Indiana, New Jersey, and California, although some of these projects had already been previously announced. New initiatives unveiled this week include a new factory dedicated to weight loss medicines, with the location yet to be revealed, and a plant for continuous glucose monitoring in Indiana.
“Our investments of $50 billion over the next five years will lay the foundation for our next era of innovation and growth, benefiting patients in the U.S. and around the world,” said Roche CEO Thomas Schinecker in a statement.
Boost to U.S. Jobs and Exports
Of the 12,000 new positions being created, nearly 6,500 will be in construction, with 1,000 in new and expanded facilities. Once the new facilities are fully operational, Roche will export more medicines from the U.S. than it imports, signaling a shift toward more domestic production.
The United States is a crucial market for Roche, which generated nearly 48% of its sales from the country in 2024, driven by blockbuster drugs like Xolair for asthma and food allergies, and Ocrevus for multiple sclerosis.
Collaboration with Swiss Government Amid U.S. Tariff Threats
Roche’s announcement also aligns with the efforts of the Swiss government, which is engaged in discussions with the U.S. to reduce a looming 31% tariff on Swiss exports. Swiss President Karin Keller Sutter is set to meet with senior U.S. officials this week to address these concerns.
“Our investments have also been aligned with the Swiss government and form part of the ongoing discussions between the U.S. and Switzerland,” a Roche spokesperson said.
Prepared for Tariff Challenges
While the threat of tariffs looms, Roche has said it is well-prepared to navigate these potential challenges. The company has been analyzing the situation closely and is taking mitigation measures to adapt. Despite the uncertainty surrounding the tariff situation, Roche has no plans to scale back its investments in other regions and will provide further details of its strategy in the coming weeks.
The Trump administration recently launched a probe into pharmaceutical imports, signaling a potential future tariff on the sector. The timing and extent of these tariffs remain uncertain, but they could have significant effects on the pharmaceutical industry, which saw nearly $213 billion in imports last year alone.
