Merck commits $3B to expand pharmaceutical manufacturing in Virginia

Merck & Co. is set to construct a $3 billion, 400,000-square-foot pharmaceutical manufacturing facility in Elkton, Virginia, marking a substantial increase from its initial $2 billion plan. The expansion will create 500 jobs and serve as a new Center of Excellence for Pharmaceutical Ingredients and Small Molecule Manufacturing, complementing Merck’s existing operations in the Shenandoah Valley, where it has a near 85-year presence.

The project will cover both active pharmaceutical ingredient production and drug product development, positioning the facility as a critical hub for small-molecule manufacturing and testing. The Virginia Economic Development Partnership facilitated the deal, securing support from Rockingham County and the Shenandoah Valley Partnership, alongside $9 million in state grants and assistance through the Virginia Talent Accelerator Program, which provides bespoke training and recruitment solutions for expanding operations.

Merck’s investment is part of a broader trend among pharmaceutical giants to expand U.S.-based manufacturing capacity amid rising geopolitical pressures and potential import tariffs. Eli Lilly is pursuing $11.5 billion in new U.S. facilities, including two in Virginia and one in Texas, while Johnson & Johnson is investing $2 billion to expand its biopharmaceutical footprint in North Carolina, creating 120 jobs.

These moves underscore a shift in the industry towards domestic production, driven by the need for secure supply chains and strategic resilience. As companies invest billions into U.S. manufacturing, regional hubs such as Virginia and North Carolina are emerging as critical nodes in the global pharmaceutical network.

Explore how Merck and other industry leaders are reshaping the U.S. pharmaceutical manufacturing landscape.