Gilead Pledges $11B Investment In U.S. Pharmaceutical Production

Drugmaker Gilead is adding to its promised investments in the U.S., vowing to spend another $11B on top of the $21B it has already committed to research, development and manufacturing.

Gilead Sciences will split the newest planned investment between $4B for capital projects, $5B for tech, operations and research, and $2B for digital and engineering projects, the company announced this week.

The $11B sum will help build three new facilities and upgrade three existing sites through 2030, the Bay Area-based company said, although it didn't specify where the projects would be. The newest investment would add another 800 permanent jobs and support 2,200 new indirect jobs.

Gilead is the latest drugmaker in the U.S. to announce manufacturing investments. Combined, Johnson & Johnson, Roche and Regeneron Pharmaceuticals have committed to more than $100B in planned investments.

Pharmaceutical companies are keen to demonstrate their dedication to the U.S. as President Donald Trump threatens tariffs that could upend global drug production. Trump has said he wants more drug manufacturing to be based domestically.

Drugmakers’ business models may also have to change, with companies that make most of their profits in the U.S. but house their headquarters in lower-tax countries also being forced to consider a shift, The Wall Street Journal previously reported.

CEO Daniel O’Day said Gilead is better positioned than some of its competitors, with around 80% of its profits and the majority of its intellectual property inside the U.S., Manufacturing Dive reported.

Construction will take time and could be more expensive than Gilead hopes, however. On the company’s first-quarter earnings call, O’Day said tariffs could impact materials Gilead relies on like “steel, lab supplies, chemicals, reagents.”