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AbbVie invests $195m to expand API manufacturing in the US

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The pharma company will add to its existing Chicago site, boosting its active pharmaceutical ingredient production capacity.

AbbVie CEO

Credit: JHVEPhoto / Shutterstock.com

AbbVie is set to spend $195 million to boost its active pharmaceutical ingredient (API) production capacity in the US.

 

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The investment will go into expanding the pharma company’s existing North Chicago, Illinois manufacturing plant, with construction beginning in the autumn and its new capabilities coming online in 2027.

The new API facility will expand AbbVie’s chemical synthesis capabilities in the US and support its domestic production of current and next-generation neuroscience, immunology and oncology medicines.

Robert Michael, AbbVie’s Chairman and Chief Executive Officer, said: “Over the next decade, AbbVie will expand production of API, drug product, peptides and medical devices in the US to support future medical breakthroughs.

“This is an important step to maintain US leadership in pharmaceutical innovation and deliver next-generation medicines that make a remarkable impact on patients’ lives.”

The expansion adds to AbbVie‘s previous commitment to invest more than $10 billion in the US over the next decade. It also comes as the current US administration ramps up pressure on the pharma industry to onshore production and manufacturing capabilities.

This year’s looming import tariffs have already been preceded by billion-dollar manufacturing and research and development (R&D) investment pledges from a number of companies.

Among them are Johnson & Johnson, which has earmarked $55 billion over the next four years; AstraZeneca plans to put in $50 billion by 2030; Roche will also spend $50 billion over the next five years; and there are smaller investment promises from UCB ($5 billion) and Merck & Co ($3.5 billion).

Adding to their number is Lilly, which is set to build four new plants, three of which will focus on APIs – the domestic production of which is a particular concern to the US government.

Announcing a new FDA new programme to encourage US pharma manufacturing investments last week, Commissioner Marty Makary said the country’s reliance on overseas API sources had created “national security risks”.

“The FDA PreCheck initiative is one of many steps FDA is taking that can help reverse America’s reliance on foreign drug manufacturing and ensure that Americans have a resilient, strong, and domestic drug supply,” he added.

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