USA – Roche’s U.S. expansion plans are gaining momentum with a significant new investment, but the future of its broader US $50 billion commitment now hinges on shifting policy winds in Washington.
On Monday, Roche and its U.S. biotech arm Genentech announced a US $700 million investment to build a 600,000-square-foot manufacturing plant in North Carolina focused on producing next-generation obesity treatments.
The facility is expected to create over 400 high-paying jobs once operational, with an additional 1,500 jobs during construction and site development.
Roche also hinted that the site could expand further in the future, depending on business needs and the U.S. policy climate.
However, this optimism comes with a note of caution. A company spokesperson stated that Roche’s full U.S. investment strategy could be reassessed if future regulations make it harder for the pharmaceutical industry to operate and innovate in the country.
The statement did not mention specific policies but was made shortly after former President Donald Trump signed an executive order reviving the Most Favored Nation (MFN) policy, aimed at cutting drug prices by matching them with those in other countries.
The MFN policy, while not fully detailed, could have wide-ranging consequences. Trump claimed it would lead to an immediate 50% drop in drug prices, though legal questions and a lack of implementation details have drawn skepticism from analysts.
Many in the pharmaceutical industry view the policy as a form of price control that could stifle innovation and investment.
Industry leaders are sounding the alarm. Executives from companies like Takeda, Novartis, and AbbVie have warned that MFN could lead to massive financial setbacks, potentially stripping up to US $1 trillion from the sector over a decade.
They argue that such regulations would limit investment in research and development and weaken the U.S. healthcare ecosystem.
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