Amgen's $900 Million Ohio Expansion: A Strategic Bet on U.S. Manufacturing Leadership

Amgen, a global leader in biotechnology, has announced a $900 million expansion of its biomanufacturing facility in New Albany, Ohio, marking a pivotal step in its long-term strategy to strengthen U.S. production capabilities. This expansion brings the total investment in Central Ohio to over $1.4 billion and will create 350 new jobs, building on Amgen’s initial $500 million commitment in 2021. The move underscores a broader industry shift toward domestic manufacturing, driven by tax incentives, geopolitical pressures, and the need to meet rising global demand for biologic therapies.

The Ohio Investment: A Model of Modern Manufacturing

The Ohio facility, operational since 2022, is a showcase of cutting-edge automation and sustainability. Its 300,000-square-foot plant features an automated storage retrieval system (ASRS) and automated guided vehicles (AGVs)—dubbed Apollo, Hercules, and Zeus—designed to streamline material handling. These systems reduce energy use by 75% and water consumption by 80% compared to traditional methods, aligning with Amgen’s goal of achieving carbon neutrality by 2027. The expansion will further scale this infrastructure, positioning Ohio as a hub for high-tech biologics production.

The facility’s role in Amgen’s global network is clear: it focuses on final product assembly, packaging, and distribution for a portfolio of biologic medicines addressing critical conditions such as cancer, heart disease, osteoporosis, and rare diseases. While Amgen does not disclose facility-specific product details, the site’s advanced capabilities suggest it supports therapies central to the company’s $25 billion annual revenue stream.

Why Ohio? Tax Incentives, Talent, and Logistics

Amgen’s CEO, Robert Bradway, emphasized Ohio’s “supportive business climate, skilled workforce, and strategic location” as key factors in the decision. The state’s appeal lies in its pro-business policies, including streamlined permitting processes and partnerships with institutions like JobsOhio, Ohio’s economic development agency. These factors enabled Amgen to secure licensure for its Ohio plant in just 26 months—the fastest in the company’s 45-year history.

Ohio’s talent pipeline also played a role. The state’s universities and technical schools supply a steady flow of graduates in biotechnology, engineering, and advanced manufacturing, directly addressing Amgen’s need for specialized workers. The expansion will add 750 jobs in total, with 350 new roles announced in 2025, reinforcing Ohio’s reputation as a magnet for high-wage manufacturing jobs.

A Broader Industry Trend: U.S. Manufacturing Onshoring

Amgen’s investment is part of a $5 billion U.S. manufacturing commitment since the passage of the Tax Cuts and Jobs Act of 2017. This law, alongside concerns over global supply chain fragility and trade policies, has incentivized pharmaceutical giants like Eli Lilly, Novartis, and Johnson & Johnson to shift production back to the U.S. Amgen’s Ohio plant exemplifies this trend, leveraging domestic tax advantages to reduce reliance on overseas facilities.

The economic ripple effects are significant. Amgen estimates its U.S. investments have generated $12 billion in downstream economic output, with Ohio’s expansion alone expected to boost local construction, logistics, and ancillary industries. Governor Mike DeWine highlighted the project as evidence of Ohio’s “strong foundation” for attracting high-value industries, a sentiment echoed by companies like Honda, which recently announced a $3.5 billion battery plant in the state.

Risks and Opportunities on the Horizon

Despite the optimism, Amgen faces risks tied to regulatory hurdles, global economic volatility, and supply chain disruptions. The company’s forward-looking disclaimers note that manufacturing constraints or delays in FDA approvals could impact its growth trajectory. However, the Ohio facility’s automation and sustainability focus position it to mitigate these risks.

For investors, Amgen’s expansion signals confidence in its pipeline of innovative therapies and the long-term demand for biologics. The stock, which has risen 22% since 2020, reflects this optimism, though it remains vulnerable to pricing pressures in healthcare markets.

Conclusion: A Win-Win for Amgen and Ohio’s Economy

Amgen’s $900 million investment in Ohio is a win for both the company and the state. By leveraging Ohio’s skilled workforce, advanced infrastructure, and supportive policies, Amgen secures a strategic foothold in U.S. biomanufacturing, reducing costs and ensuring reliable supply for its global patient base. For Ohio, the project delivers 750 high-quality jobs, a boost to local economies, and a showcase of its potential as a leader in advanced manufacturing.

With Amgen’s Ohio facility operationalizing at full capacity and its carbon-neutral goals within reach, the expansion exemplifies how corporate investment in domestic infrastructure can drive economic growth while addressing critical industry challenges. For investors, this move reinforces Amgen’s position as a resilient, forward-thinking player in biotechnology—positioned to capitalize on rising demand for its life-saving therapies.

In a sector increasingly shaped by geopolitical and environmental imperatives, Amgen’s bet on Ohio is more than a manufacturing upgrade—it’s a blueprint for 21st-century biotech leadership.