Amgen’s $900 Million Ohio Gamble: A Strategic Bet on U.S. Manufacturing Resurgence

Amgen Inc. has placed a bold bet on the future of U.S. pharmaceutical manufacturing with its $900 million expansion of its biomanufacturing facility in New Albany, Ohio—a move that underscores a broader industry shift toward domestic production amid rising trade tensions and regulatory pressures. The project, announced April 25, 2025, will create 350 new jobs, bringing the total workforce at the site to 750, while pushing Amgen’s total Ohio investment to over $1.4 billion since 2021. This expansion is not merely a facility upgrade; it’s a strategic response to a confluence of political, economic, and logistical factors reshaping the pharmaceutical landscape.

The Ohio Play: A Calculated Move

The Ohio expansion builds on Amgen’s initial $500 million investment in a 300,000-square-foot facility launched in June 2021, which began operations in February 2024. The new phase, expected to be completed by 2027, will enhance the site’s capacity to produce biologic drugs—a high-margin segment critical to Amgen’s portfolio, which includes treatments for cancer, heart disease, and rare conditions. While details about specific production lines remain sparse, the facility already employs advanced automation systems like the Apollo and Hercules guided vehicles, which streamline material handling and packaging.

CEO Robert Bradway emphasized Ohio’s “supportive business climate, skilled workforce, and strategic location” as key factors in the decision. The state’s logistical advantages—proximity to major highways, rail lines, and its central U.S. location—allow for efficient distribution of finished drugs. Ohio’s status as a right-to-work state and its partnerships with local universities to train biomanufacturing talent also played roles, alongside tax incentives tied to the 2017 Tax Cuts and Jobs Act.

A Tariff-Driven Industry Shift

Amgen’s move is part of a sector-wide trend as pharmaceutical giants rush to insulate themselves from potential tariffs on imported drugs. The Trump administration’s ongoing investigation into drug pricing and its threat of tariffs on imported pharmaceuticals have pushed companies like Eli Lilly, Merck, and Johnson & Johnson to pledge billions in U.S. investments. For instance, Eli Lilly has committed $27 billion through 2028, while J&J has allocated $55 billion over four years.

Amgen’s Ohio project distinguishes itself by scaling existing infrastructure rather than building entirely new facilities, unlike its $1 billion Holly Springs, North Carolina, plant announced in December 2024. This reflects a pragmatic approach: leveraging proven sites to meet rising demand while minimizing risks.

Economic Impact and Industry Implications

The Ohio expansion is expected to generate over $12 billion in downstream economic output nationwide since 2017, as Amgen’s U.S. investments have totaled nearly $5 billion since the Tax Cuts and Jobs Act. Ohio Governor Mike DeWine hailed the project as a jobs engine, noting the 350 new roles—many in high-tech manufacturing—are critical for the state’s economy.

However, the strategy is not without risks. While tariffs could drive demand for U.S.-made drugs, the long-term sustainability of these investments hinges on federal policies. Industry leaders like J&J’s CEO Joaquin Duato argue that tax reforms—not tariffs—are more effective at incentivizing domestic production. AbbVie’s CFO Scott Reents echoed this, warning that without tax stability, firms may pivot again.

Conclusion: A Bets on Reshoring, But Will It Pay Off?

Amgen’s $900 million bet on Ohio is a clear vote of confidence in U.S. manufacturing’s comeback. The expansion creates 350 jobs, adds to a $1.4 billion Ohio footprint, and aligns with a $5 billion U.S. investment pipeline since 2017. Yet its success depends on navigating an uncertain policy landscape: tariffs may drive demand today, but without tax reforms, companies could face headwinds.

The data tells a promising story so far. Amgen’s stock has outperformed the S&P 500 and biotech indices over three years, rising 28% versus 12% and 18% respectively, reflecting investor faith in its manufacturing strategy. Meanwhile, Ohio’s unemployment rate dropped to 3.8% in early 2025—below the national average—suggesting the state’s workforce can support such projects.

For Amgen, the Ohio expansion is more than a factory upgrade—it’s a statement. In an era of geopolitical and regulatory volatility, reshoring production is no longer optional. The question now is whether this gamble will pay off in a sector where margins are thin, innovation cycles are long, and Washington’s whims loom large. The answer may shape the future of American manufacturing for decades to come.