With the threat of Trump administration's tariffs swirling and biopharma companies bracing for impact, many are announcing their intention to strengthen their presence in the U.S.
The latest to hop on the invest-in-USA bandwagon is Thermo Fisher Scientific. The Massachusetts-based producer of medical instruments, diagnostics and pharmaceuticals will spend an additional $2 billion in the U.S. over the next four years “strengthening American innovation, manufacturing and economic competitiveness,” the company said in a release.
Three-quarters of the pledge will bolster Thermo Fisher’s manufacturing operations, while the remaining $500 million will expand its R&D efforts.
“Thermo Fisher’s commitment to U.S. manufacturing reflects our confidence that America will continue to lead the world in science and innovation,” Marc Casper, the company’s CEO, said in a statement. “By expanding our U.S. operations, we ensure that life-saving medicines and therapies will continue to be developed and produced in America for decades to come.”
Thermo Fisher already has an extensive network of 64 U.S. facilities covering 37 states. But it also has operations in 43 other countries. In the U.K., for example, it employs 5,000 at 26 locations. The company’s global head count at the end of last year was approximately 125,000, with more than 50,000 working in the U.S.
The company reported revenue of $43 billion last year, which was more than double its sales of $21 billion in 2017. Earlier this week, Thermo Fisher reported first-quarter sales of $10.4 billion, which were up 1% year over year.
With the U.S. spending plan, Thermo Fisher joins companies such as Roche, which earlier this week revealed a $50 billion plan centered on the U.S. Other biopharma companies such as Johnson & Johnson ($55 billion), Eli Lilly ($27 billion) and Novartis ($23 billion) have recently revealed large outlays designed to, as J&J put it, “support American jobs.”