Gilead Sciences Announces $32 Billion Total Investment in U.S. Manufacturing and R&D by 2030

Following pharmaceutical giants such as Johnson & Johnson, AbbVie, Novartis, and Roche, another major pharmaceutical company, Gilead Sciences, has announced a significant investment in its U.S.-based operations. This time, the plan involves adding an investment of $11 billion to enhance its manufacturing and R&D capabilities in the United States.

According to a statement released by Gilead Sciences on Wednesday, the primary allocation of the $11 billion includes: $5 billion invested in technology, operations, and R&D base activities; $4 billion for capital projects such as building new laboratories and purchasing equipment; and the final $2 billion will be invested in digital and advanced engineering projects. Although the specific timing, locations, and methods of fund deployment have not been announced, Gilead stated that this investment is expected to create approximately 800 new direct jobs by 2028 and support more than 2,200 indirect jobs.

This $11 billion is not the entire plan. In its statement, Gilead clearly pointed out that this funding is an additional investment on top of the originally planned $21 billion for U.S.-based manufacturing and R&D expenses by 2030. This means that by 2030, Gilead’s total investment in the U.S. will reach $32 billion. The total $32 billion will be used to build three brand-new, state-of-the-art facilities, upgrade three existing sites to expand U.S.-based manufacturing and R&D capabilities, and invest in new technologies and advanced engineering projects.

Gilead's series of investment moves were made under pressure from Trump. The United States has long hoped to see more manufacturing return or increased investment in the country. Gilead's actions echo other pharmaceutical companies that have recently announced increased investments in the U.S., such as Johnson & Johnson's commitment to invest $55 billion over four years, including building three new manufacturing sites.

Although Gilead Sciences is making significant investments on one hand, like many pharmaceutical companies, it cannot avoid cutbacks on the other. Over the past two years, the company, which focuses on infectious diseases and oncology, laid off 72 employees in Seattle and planned to close a research and development support base in the city. This follows a reduction of approximately 7% of the total workforce at its biotech acquisition company, Kite, a year earlier.

Facing potential import tariff risks and increasing emphasis on supply chain resilience, several pharmaceutical giants have announced massive investment plans in the U.S. to expand local manufacturing and R&D capabilities.AbbVie $100 billion, Roche $500 billion, Novartis $230 billion, Eli Lilly $500 billion, Johnson & Johnson $550 billion...

ThisA strong wave of returns in the pharmaceuticals industry is either underway or still continuing.