Merck & Co (MSD) begins construction on a $3bn pharmaceutical manufacturing Centre of Excellence in Virginia, US, despite tariff threats. The site at Elkton will create 8,000 jobs during construction and offer 500 full-time roles once operational. MSD’s wider US expansion plan includes a $70bn investment across various projects.

MSD aims to build a $1bn biologics centre in Delaware, a $1bn vaccine production facility in North Carolina, and invest over $3.5bn in its headquarters in New Jersey. However, the company plans to cut $3bn in operational costs by 2027, leading to around 6,000 job layoffs globally.

President Trump’s threat of 100% import tariffs on pharmaceuticals pressured MSD to accelerate its expansion plans in the US. Virginia, traditionally not a key pharma hub, is seeing increased interest, with MSD’s investment seen as a significant boost to the state’s life sciences sector.

AstraZeneca plans to invest $4.5bn in a Virginia manufacturing facility, and Eli Lilly will invest $5bn in an API and drug product facility in Goochland County. MSD’s initiative in Virginia is a step forward for the state’s biopharmaceutical manufacturing sector, according to Virginia governor Glenn Youngkin.

Read more at Yahoo Finance: MSD initiates construction on $3bn Virginia drug manufacturing site