Dive Brief:
- Regeneron Pharmaceuticals said it is expanding its U.S. manufacturing footprint through a $3 billion supply agreement with Fujifilm Diosynth Biotechnologies.
- As part of the 10-year deal, Fujifilm will manufacture large bulk drug products for Regeneron at its new facility in Holly Springs, North Carolina, with an emphasis on commercial biologic medicines.
- The move nearly doubles Regeneron’s U.S. manufacturing capacity as other drugmakers look to reinforce their domestic operations amid ongoing tariff concerns.
Dive Insight:
So far in 2025, five of the largest pharmaceutical manufacturers — Roche, Johnson & Johnson, Eli Lilly, Merck & Co. and Novartis — have pledged to invest more than $160 billion in the coming years to boost U.S. capacity.
Regeneron currently manufactures bulk drug products and materials at its facilities in Rensselaer, New York, and Limerick, Ireland, according to an investor filing. More than 80% of its workforce and assets are located in the United States, said Leonard Schleifer, president and CEO of Regeneron, in a statement.
“We are proud to advance biotech innovation, which directly improves the health of people around the globe, while generating economic growth and high-paying jobs for America itself,” Schliefer said.
Fujifilm’s Holly Springs campus is set to begin operations later this year. It will be one of the largest contract biopharmaceutical manufacturing facilities in North America, according to the town’s economic development group. The company has invested $3.2 billion in the project since its initial announcement in March 2021, excluding any funds from the Regeneron deal.
“We’re already working to bring capacity online,” Daniel Van Plew, EVP and general manager of industrial operations and product supply at Regeneron, said in a statement. “Fujifilm’s track record and new infrastructure are a strong match for our growth.”
The partnership comes as Regeneron moves forward with a $3.6 billion investment in its Tarrytown, New York, campus, which is expected to create 1,000 jobs and expand research, manufacturing and support facilities.
Meanwhile, Fujifilm is investing close to $4 billion in U.S. manufacturing sites, life sciences capabilities and workforce development, said Toshihisa Iida, director, corporate vice president and general manager of Life Sciences Strategy Headquarters and Bio-CDMO Division, in a statement. The worldwide outlay is even greater.
“FUJIFILM Diosynth Biotechnologies will be bringing additional capacity online in 2025, 2026 and beyond as it completes the current $7 billion of expansion projects underway in both Europe and United States,” Iida said.
