Merck Invests $1 Billion in New HPV Vaccine Manufacturing Facility in Durham, North Carolina

Recently,MSDA new pharmaceutical factory has opened in Durham, North Carolina, which will produce the human papillomavirus (HPV) Vaccine, including its quadrivalent vaccine Gardasil and nonavalent vaccine Gardasil 9.The factory cost$10 billion，Area225,000 square feet。

The opening of this factory comes amid increasingly intense discussions in the U.S. about strengthening the return of manufacturing.。As U.S. President Trump warns of expanding tariffs——In addition to the tariffs already imposed on China, Canada, and Mexico, tariffs will also be levied on imports from other countries, including a possible 25% tariff on pharmaceuticals. U.S. biopharmaceutical companies are considering producing more products domestically.

Last month,MSDMSD announced that it will suspend shipments of Gardasil to China due to weakened demand in the country.CompanyCEO Rob· Davis said that the demand for the vaccine is higher outside of China.According toMSDThe 2024 financial report shows that itsAce ProductHPV Vaccine Gardasil/Gardasil 9 Annual Sales Reach $8.583 Billion, Down 3% Year-over-Year，The main reason lies in the reduced demand in the China region.

According to information released by the company on Tuesday, the newThe 225,000-square-foot facility cost $1 billion to build.MSDIndicates,The facility is equipped with the latest"Technology and digital capabilities," including data analysis, generative artificial intelligence, and 3D printing.

MSDSannat, the Manufacturing Supervisor of the Company·Chatterjee added in a statement that Durham's expansion "Marks an important milestone in our efforts to strengthen production and manufacturing capabilities in the United States.”。

Two weeks ago, the Investment Committee of Delaware approvedMSDProvided by the companyA $30.2 million grant to establish a facility at the Chestnut Run Innovation & Science Park outside of Wilmington. The grant is part of the local planning and development process, and the company continues to review its options.

In 2020, the company announced plans to build a standalone facility at its Durham site dedicated to producing the Bacillus Calmette-Guérin (BCG) vaccine, which contains a weakened strain of the tuberculosis-causing bacterium, used for treating early-stage bladder cancer. At that time, there was a severe shortage of this therapeutic agent.MSDA spokespersonCorrectEndpoints NewsRepresentation, the construction of the factory is still underway and is expected to be completed later this year.

MSDIn its ownSince 2004, the new plant has been built within the 262-acre campus that the company has occupied, where it produces a variety of vaccines, including those for the prevention of chickenpox, measles, and rubella.MSDA spokesperson said in an email that the campus produced more than70 million doses of vaccine, with this number expected to increase this year. The site currently employs over 1,000 staff.

During the pandemic, the park gained national attention in China due to its rare large-scale pharmaceutical partnership with Johnson & Johnson.MSDand Johnson & Johnson have obtainedA $105 million government grant for the production of bulk materials for Merck's ill-fated COVID-19 vaccine.

It is worth noting that,FromSince 2018,MSDHave invested more than$12 billion to expand its manufacturing and R&D operations in the United States, with the investment in the Durham vaccine facility being just a part of it.The company plans to invest an additional $8 billion by 2028.

Moreover, not only MSDExpand TariffsThis policy has taken action,Two weeks ago, Eli Lilly revealed a plan in Washington to build four more manufacturing plants in the United States on top of its network of domestic production facilities, at a cost of$27 billion.

In general,MSD'sThe $1 billion new factory is not only a capacity expansion but also a key move in the reconstruction of its global supply chain., mainly forAvoid Geopolitical Risks、Strengthening the Moat of TechnologyAndFlexible Response to Needs。

References:

[1]Corrected: Merck opens billion-dollar US facility to make Gardasil.Endpoints News.March 11, 2025 09:50 AM.

[2]Merck opens $1B Gardasil manufacturing facility in North Carolina.Fierce Pharma.Mar 11, 2025 2:07pm.

[3] MSD 2024 Annual Report.