Merck has officially broken ground on its $3 billion, 400,000-square-foot pharmaceutical manufacturing facility at its Elkton, VA plant.¹

This stems from the company’s investment in its “Center of Excellence for Pharmaceutical Manufacturing,” including a more than $70 billion investment starting this year toward growing local production and research and development (not including any future business development deals in the area R&D).

Strengthening US manufacturing and job creation

Essentially, it’s all about setting the tone for future growth, while growing the United States’ reputation as a powerhouse in the biopharma innovation space.

“Today is an important milestone for Merck, for Virginia, for manufacturing in the United States and, most importantly, for the patients we serve,” said Robert M. Davis, Merck’s chairman and CEO. “This investment helps advance our goal of providing new, innovative treatment options for people facing serious health challenges in the US and around the world.”

Virginia’s growing biopharma hub

Merck has had its Elkton location for nearly 85 years. Its aforementioned center of excellence will be specializing in small molecule manufacturing and testing, creating over 500 full-time jobs and 8,000 construction roles in the process.

“Merck’s transformational $3 billion commitment to locate its Center of Excellence marks a giant leap forward for both America’s and Virginia’s life sciences sector,” commented Virginia Gov. Glenn Youngkin. “It deepens the company’s long-standing commitment to innovation and strengthens the Commonwealth’s position as the emerging national leader in biopharmaceutical advanced manufacturing and life sciences. With hundreds of new jobs and cutting-edge capabilities coming to the Shenandoah Valley, we’re building a future where Virginians lead the way in developing lifesaving medicines for patients around the world.”

Expanding US manufacturing footprint

This news is the latest of several for Merck, who has unveiled plans for nearly $6 billion in manufacturing ventures spanning Delaware, Kansas, North Carolina, and Virginia, totaling more than 1,600 new American jobs. Some of those plans include, but are not limited to:

• March: Merck completes construction of a $1 billion, 225,000-square-foot state-of-the-art facility that increases vaccine manufacturing capacity in Durham, NC.
• April: Merck begins construction on Merck Wilmington Biotech, a $1 billion, 470,000-square-foot biologics Center of Excellence in Wilmington, DE that’s designed to support the launch and commercial manufacturing of biologics and therapies.

“For almost 85 years, our Elkton site has been a beacon of innovation in our proud legacy of delivering leading-edge science for patients,” noted Sanat Chattopadhyay, executive vice president and president, Merck’s manufacturing division. “We’re proud to be part of the Elkton community, where generations have contributed to our important work with determination, accountability, teamwork, and grit.”

US pharma’s reshoring momentum

Merck’s new center of excellence continues a streak of pharma manufacturers relocating their production processes back to the US, with the avoidance of 100% tariffs on branded or patented pharma products as an incentive. Just last week, AstraZeneca introduced its augmented, modernized production facility in Coppell, TX.² The latest $445 million expansion is expected to double the manufacturing efforts of Lokelma—sodium zirconium cyclosilicate that’s used to treat hyperkalemia, high potassium levels in the blood.

The Coppell plant is the only manufacturing facility that produces Lokelma worldwide, shipping the drug to more than 50 countries. The current facility houses 250 employees, and via the growth project, the structure will be increasing 9,000 square feet. It’ll welcome two manufacturing lines that will provide drug substance and drug product laboratory testing, along with warehousing, additional manufacturing utilities and administrative space.

“Our manufacturing facility in Coppell serves as both a critical pillar in global healthcare and has played an important role in supporting the local workforce over the past 10 years,” said Jim Fox, senior vice president of Americas supply operations at AstraZeneca. “The expansion underscores our commitment to patients and support for Texas’ long-term vision for scientific growth and innovation.”

References

1. Merck Breaks Ground on $3 Billion Center of Excellence for Pharmaceutical Manufacturing in Elkton, Virginia. Merck. October 20, 2025. Accessed October 20, 2025. https://www.merck.com/news/merck-breaks-ground-on-3-billion-center-of-excellence-for-pharmaceutical-manufacturing-in-elkton-virginia/

2. Saraceno N. AstraZeneca Expands Texas Manufacturing Facility to Double Production of Hyperkalemia Drug. Pharmaceutical Commerce. October 16, 2025. Accessed October 20, 2025. https://www.pharmaceuticalcommerce.com/view/astrazeneca-expands-texas-manufacturing-facility-double-production-hyperkalemia-drug