Merck to invest $1B in new US plant to make blockbuster cancer treatment Keytruda

Core Viewpoint - Merck is investing $1 billion in a new plant in Delaware to expand domestic production in response to tariffs imposed by the Trump administration, particularly focusing on the production of biologic drugs and its cancer treatment Keytruda [1][4]. Investment and Production Plans - The new facility will be Merck's first in-house site in the US for producing Keytruda, with expectations for labs to be fully operational by 2028 and to produce experimental drugs by 2030 [4]. - The investment is expected to create at least 500 full-time jobs and approximately 4,000 construction jobs [4]. Tariff Impact - Merck has identified Keytruda as its biggest exposure to tariffs and has estimated an additional cost of $200 million due to the levies implemented to date [2][7]. - The company has sufficient US inventory of Keytruda for the current year [2][7]. Industry Context - The Trump administration has been pressuring US drugmakers to increase domestic production, leading to investigations into drug imports and the implementation of tariffs [5]. - Other US drugmakers, such as Eli Lilly and Johnson & Johnson, are also making additional investments to enhance domestic production in light of tariff threats [6].