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Major pharmaceutical investments in the United States are expanding API, capsule, and packaging capacity, enhancing supply chain resilience and supporting domestic drug production.
The United States pharmaceutical landscape is entering a new phase of domestic investment and expansion, prompted in part by such trade policies as the proposed 100% tariff on imported drugs. As PharmTech.com has previously reported, this tariff framework incentivizes companies to build or expand US-based manufacturing operations, offering a strategic advantage for market access while also addressing supply chain vulnerabilities (1). Companies across the industry are responding with large-scale infrastructure initiatives, underscoring the intersection of policy, capital, and operational strategy.
This environment has heightened the focus on localized production for APIs, capsules, and packaging solutions, critical both for clinical development and commercial supply. For scientists, researchers, and manufacturing professionals, these moves carry implications for technology transfer, scale-up timelines, and integration of R&D with production capabilities.
The following examples illustrate the industry’s response to evolving market pressures and policy incentives:
ACG is investing $200 million to build its first US hard-shell capsule manufacturing facility in Atlanta, with dedicated gelatin and hydroxypropyl methylcellulose production, creating 200 or more jobs and strengthening R&D collaboration (2).
Wilmington PharmaTech, supported by Curewell Capital, is expanding its small molecule API development and manufacturing capacity, leveraging its Delaware campus and global R&D expertise to meet growing demand (3).
Cambrex is committing $120 million to expand API manufacturing in Charles City, Iowa, increasing large-scale capacity by 40% and enhancing production of small molecules and peptides to secure US supply chains (4).
Sharp Services is investing $100 million across US and European facilities to expand sterile filling, injectable assembly, and oral solid dose packaging, improving clinical and commercial production capabilities (5).
Collectively, these investments highlight a concerted industry shift toward domestic capability building, enabling faster production, enhanced quality control, and greater resilience amid evolving tariff and supply chain pressures.
References
1. Cole, C. How 100% Pharmaceutical Tariffs Will Impact Domestic Manufacturing and Supply Chains. PharmTech.com, Sept. 26, 2025.
2. ACG. ACG to Invest $200 Million in US Hard-Shell Capsule Manufacturing. Press Release. Oct. 17, 2025.
3. Curewell Capital. Wilmington PharmaTech Continues Expansion with Significant Investment from Curewell Capital. Press Release. Oct. 21, 2025.
4. Cambrex. Cambrex Unveils $120 Million Investment to Expand API Manufacturing and Strengthen US Drug Supply Resilience. Press Release. Oct. 22, 2025.
5. Sharp Services. Sharp Services Invests $100 Million in US and European Facilities to Increase Capacity and Service Offerings. Press Release. Oct. 22, 2025.