French pharmaceutical giant Sanofi has announced plans to invest $20 billion in the US over the next five years, marking one of the largest US expansions by a European drugmaker to date. The move aligns with a growing trend among global pharma companies to shift manufacturing and R&D investments stateside in response to evolving US trade and pricing policies, including pharmaceutical tariffs.
The investment comes amid renewed threats of tariffs on pharmaceutical imports from the Trump administration. While lawmakers have yet to enact tariffs on medicines, an ongoing investigation into pharmaceutical imports on national security grounds has prompted many manufacturers to seek ways to safeguard their US operations.
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In a public statement, Sanofi said the investment would include a substantial increase in US research and development spending and expanding its US manufacturing capacity. That expansion will come through both direct investments in Sanofi facilities and partnerships with other US-based manufacturers.
The company noted that these efforts aim to ensure the production of key medicines in the US and support job creation and innovation in communities where it and its partners operate.
Sanofi currently employs 13,000 people in the US, and the planned investments are expected to create “a significant number of high-paying jobs in multiple states.” It’s reasonable to assume some of those jobs will be created for laboratory work. Nearly half of the company’s Q1 2025 revenue came from the US market.
The company recently sold a controlling stake in its over-the-counter business—including the popular painkiller Doliprane—to a US investment firm for $17 billion, a move that appears to further cement Sanofi’s long-term strategic alignment with the US market.
A Broader Shift Among Multinational Pharma Companies
Sanofi is not alone. Other major pharmaceutical companies—including Roche, AstraZeneca, and Novartis—have also committed billions to bolster their US presence in recent months.
In April, Swiss-based Roche announced a $50 billion investment in US operations. AstraZeneca and Novartis have likewise expanded their US manufacturing and R&D footprints, citing both logistical benefits and a desire to insulate themselves from future trade disruptions or pricing mandates driven by pharmaceutical tariffs.
These investments come as the pharmaceutical industry braces for potential new regulations. A recent executive order from President Donald Trump aims to require drug companies to offer US consumers the lowest global drug prices—a policy that could cut into profits traditionally used to fund American research and innovation.
Roche, despite its sizable investment, warned that the pricing order could ultimately force the company to scale back some of its US activities.
Navigating the Uncertainty of Pharmaceutical Tariffs
As pharma companies pivot toward increased US investment, the industry’s global balance may be shifting. Trade policies, pricing pressures, and supply chain uncertainties are pushing companies to bring operations closer to their most lucrative market.
Sanofi’s multibillion-dollar bet is just the latest sign that for many pharmaceutical companies, manufacturing in America is becoming less of an option and more of a necessity.
