The new North Chicago facility, slated to open in 2027, will boost domestic production of key drug ingredients for immunology, neuroscience, and oncology therapies, reinforcing US pharmaceutical capacity amid industry reshoring and tariff concerns.
AbbVie is investing $195 million investment into its North Chicago, IL manufacturing facility as the company looks to grow its domestic active pharmaceutical ingredient (API) production in the United States.1 The plant’s construction is scheduled to begin this fall, with full operations scheduled for 2027.
Manufacturing of API is a multi-step process focused on creating the active components that deliver a medication’s therapeutic effects. This new plant is expected to help grow the company’s chemical synthesis services in the US, which involves the domestic production of immunology, neuroscience, and oncology drugs.
"Over the next decade, AbbVie will expand production of API, drug product, peptides and medical devices in the US to support future medical breakthroughs," said Robert A. Michael, chairman and CEO of AbbVie. "This is an important step to maintain US leadership in pharmaceutical innovation and deliver next-generation medicines that make a remarkable impact on patients' lives."
The facility will be growing AbbVie's current US production footprint, which is responsible for more than 6,000 jobs spanning 11 manufacturing facilities, alongside and thousands of supplier jobs. The decision to boost domestic products also directly impacts the state of Illinois—where its HQ lies.
"AbbVie's decision to expand its manufacturing footprint in Illinois is a testament to our state's world-class workforce, infrastructure, cutting-edge research institutions, and location that keeps businesses connected to the nation and the world," said Illinois Governor JB Pritzker. "As a global leader in pharmaceuticals, AbbVie's investment in Illinois bolsters our world-class biomanufacturing ecosystem and creates jobs while it innovates next-generation medicines."
The latest development also follows AbbVie's decision to financially commit more than $10 billion of capital in the US toward manufacturing services and increasing capacity, adding to the existing pharma manufacturers that have starting reshoring the production processes back to the US to avoid steep tariffs.
This includes a combined $53 billion by Regeneron and Roche to improve their manufacturing and R&D infrastructure, $1 billion by Merck, and $2 billion by Thermo Fisher. AstraZeneca plans to invest $50 billion by 2030 in US-based drug manufacturing and R&D, marking its largest single manufacturing investment globally.2
There had been talks over the past few months that a possible 25% tariff might impact the sector. Trump even stated that these levies on pharmaceutical imports could ultimately reach up to 250%, marking a new high.2
In a recent chat3 with Pharma Commerce, Dave Malenfant, a healthcare supply chain expert, discussed the potential impact of a proposed 250% tariff on pharmaceutical imports, emphasizing that the effect depends heavily on where in the supply chain the tariff is applied.
He notes that if imposed on APIs, the impact would be minimal, as they contribute relatively little to the total cost of a finished drug and adjustments could be made through negotiation. However, if applied to finished pharmaceuticals or key components the cost implications could be significant, since these materials represent a substantial portion of overall manufacturing costs.
“It depends where the tariff is applied … If it's components like bottle plugs, closures, molded parts, glass, that has a bigger impact, because that is the one of the bigger costs within the main total cost of a pharmaceutical,” Malenfant explained. “That will probably increase the cost of the product. Does it mean it's going to be a price increase? I don't believe so. I think the companies will eat it up in their margins, because here in the United States—and I know some of the listening audience will probably not like me saying this—but the US enjoys the largest margins in pharmaceutical drugs in the world.
“Having the tariffs, you have to decide, do we eat it in margin, or do we pass it on to the consumer? By the way, it doesn't really get passed on to the consumer, it gets passed on to the insurance companies, and the insurance companies certainly are not going to accept it, so the network is going to be disrupted, and there's going to be a lot of negotiations between the partners, between distributors and insurance companies, to offset it so that there is not a direct impact to the end patient.”
References
1. AbbVie Announces $195 Million Investment to Expand Active Pharmaceutical Ingredient Manufacturing in the US. PR Newswire. August 12, 2025. Accessed August 13, 2025.
2. Saraceno N. FDA Launches PreCheck Program to Strengthen US Drug Manufacturing. Pharmaceutical Commerce. August 8, 2025. Accessed August 13, 2025.
3. Saraceno N. Potential 250% Pharma Tariffs Could Pressure Margins Without Directly Raising Patient Costs. Pharmaceutical Commerce. August 12, 2025. Accessed August 13, 2025.
