Pharma Investment Surge in US Manufacturing Creates Major Opportunities for CDMOs

Major pharmaceutical companies—including Roche, Eli Lilly, Johnson & Johnson, and GSK—have announced multi-billion dollar investments totalling over $50 billion each for new and expanded US manufacturing facilities in 20251 3 5 9.

Eli Lilly revealed a $27 billion plan to build four new manufacturing plants, focusing on active pharmaceutical ingredients (APIs) and injectable medicines, with its first site in Virginia slated to produce cancer and advanced therapies3.

Johnson & Johnson is investing over $55 billion across four new plants and expanding existing sites, aiming to localize production of biologics, vaccines, and radiopharmaceuticals in partnership with Fujifilm Biotechnologies1 3 9.

The US pharmaceutical contract development and manufacturing organization (CDMO) market is projected to nearly double from $43.41 billion in 2025 to over $83 billion by 2034, driven by increased demand for outsourcing API and finished dosage formulations2 4.

API manufacturing is currently the dominant service offered by CDMOs, with rapid growth projected in finished dosage formulation manufacturing, especially for complex drugs—injectables, specialty oral tablets, oncology, and rare disease treatments2 4.

These investments are motivated by changing US trade policy, supply chain resilience concerns, and the need to comply with strict FDA manufacturing standards, leading pharma companies to prioritize on-shoring and advanced manufacturing technologies1 3 6.

CDMOs are responding to opportunity with significant upgrades in sterile and injectable capabilities, single-use technology, and continuous manufacturing, positioning themselves as essential partners for big pharma's US expansion4.

The wave of pharma investments is creating thousands of new US jobs and reinforcing the trend for pharma companies to manufacture most of their medicines for US patients domestically1 8 11.

The U.S. biopharmaceutical contract manufacturing market is expected to expand rapidly, especially in innovative areas such as mRNA-based treatments, monoclonal antibodies, and advanced therapy medicinal products4 12.