Home Roche Announces $50 Billion Investment in U.S., Creating 12,000 Jobs

Roche Announces $50 Billion Investment in U.S., Creating 12,000 Jobs

Apr 23, 2025 14:55 CST Updated 14:55
Johnson & Johnson

Medical Device R&D and Manufacturer

Source: Medical Device Business Review

01
Roche Officially Announces:
Investment of $50 billion USD, adding 12,000 new jobs

April 22According to a report by Reuters, Roche announced a major investment plan: investing 50 billion US dollars (approximately RMB364.6 billion), creating over 12,000 new jobs.


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Source: Reuters


Meanwhile, Roche said,without cutting plans to invest in other regions around the worldAnd will announce a more detailed strategic plan in the coming weeks.


This is the company's latest large-scale investment in response to Trump's tariff policy.


Roche Group was founded on October 1, 1896.Headquartered in Basel, Switzerland, founded by Fritz Hoffmann-La Roche.With a history of over 125 years, it is a global leader in biotechnology and a leader in in vitro diagnostics.


Roche CEO Thomas Schinecker said that this investment highlights Roche's commitment to the U.S. market, where Roche has 24 production sites and employs 25,000 people.


Of the 12,000 new jobs, nearly 6,500 will be in the construction industry and 1,000 in newly built and expanded factories.


Roche stated that once all production facilities are in operation, its exports of medicines from the United States will exceed imports.


The United States is a key market for Roche, thanks to blockbuster drugs such as Xolair for asthma and food allergy, and Ocrevus for multiple sclerosis.Roche's sales revenue in the United States accounted for nearly 48% in 2024.


Roche to Expand Manufacturing and Distribution Centers in Kentucky, Indiana, New Jersey, and California, Although Some Projects Were Previously Announced.


The new plan includes a factory producing weight-loss drugs (the specific location has not been announced) and a new continuous glucose monitoring factory located in Indiana.


"Schinecker said in a statement: 'Our investment of $50 billion over the next five years will lay the foundation for our next era of innovation and growth, benefiting patients in the United States and around the world.'"

02
Johnson & Johnson, Abbott...
Global Medical Device Giants Make Consecutive Statements

Sources pointed out that the Trump administration launched an investigation into drug imports last week as part of the tariff imposition on the industry.


The timing and extent of the tax increase remain uncertain,But the impact could be significant. According to the United Nations trade database, last year the U.S. imported nearly $213 billion worth of pharmaceuticals, almost triple the $73 billion in 2014.


As the tariff风波 continues to escalate, multinational companies are seeking a balance between political risks and market efficiency through regionalized production capacity layout and diversified supply chain construction.



Johnson & Johnson: $55 Billion Investment in the U.S. Over the Next 4 Years


April 15,Johnson & Johnson's executives said in the first-quarter earnings report that the expected global tariff increases will have an impact on the company's finances.$400 million (approximately RMB3 billion) LossAs much as 70% of the tariff impact comes from its medical device products exported from the United States to China. 


Johnson & Johnson CFO Joseph Wolk stated that, based on the tariffs on goods and raw materials formally announced by the Trump administration so far and retaliatory measures taken by the international community,The medical technology department of the company will bear the brunt of the burden.


As for the future development direction, Wolk stated,Since the medical equipment transportation contract has already been signed, the company's ability to mitigate the impact of tariffs by adjusting prices and passing on costs is "very limited."


Last month (March 22),Johnson & Johnson announces a 25% increase in investment in the U.S. over the next four years, totaling more than $55 billion, to strengthen its domestic manufacturing capabilities.


Johnson & Johnson simultaneously announced the construction of four new manufacturing facilities, with the first one located in Wilson, North Carolina, which has already officially broken ground.


According to the company, the new plant in Wilson City will involve an investment of over 2 billion US dollars. It is expected to create 5,000 job opportunities during the construction phase and provide more than 500 long-term positions after completion. The plant will focus on producing key therapies for cancer, immunology, and neurological diseases, while the locations of the other three plants have not yet been announced.



Abbott: Invests $500 Million in the U.S.


On April 16, 2025, Abbott disclosed on its earnings call that it expects this year's tariff policy to have an impact of "hundreds of millions of dollars" on the company.


Although Abbott did not provide a breakdown of the tariff costs,But according toVijay Kumar, an analyst at Evercore ISI, a globally renowned investment bank, estimated that tariffs would cost Abbott approximately $300 million this year.(approximately RMBRMB 2.2 billion)The negative impact.


In response, Abbott has also launched a short-term emergency plan and is seeking buffer space by relying on its network of 90 production bases covering the globe.


Abbott also announced investments in manufacturing and research projects in Illinois and Texas.$500 million(approximately RMBCurrency3.65 billion),Production of equipment for screening blood and plasma donations.


These projects are expected to be put into use by the end of this year, which will help Abbott mitigate the potential impact of President Donald Trump's high tariffs on China.


Abbott CEO Robert Ford emphasized at the conference that Abbott has built a "distributed production network."Diversify Risks Through Global Supply Chain Optimization. Despite the company's active lobbying in conjunction with the medical device industry association AdvaMed,But frankly, I don't have high expectations for obtaining a tariff exemption.He cited Trump's first-term tariff policy on China, pointing out: "Historical experience shows that once tariffs are implemented, they are difficult to revoke."


Some market observers believe that regardless of whether the tariffs are ultimately implemented, the global supply chain is moving towards localization, which has become an irreversible trend.


Gabelli Funds portfolio manager Jeff Jonas pointed out: "Even if some kind of tariff agreement is reached in the end, the era of free trade and unrestricted globalization has come to an end."


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