In a bold move to reshape the landscape of pharmaceutical manufacturing in the US, President Donald Trump has signed an executive order on May 5 aimed at streamlining regulatory hurdles for domestic producers while tightening the reins on foreign manufacturers. This directive, which instructs the FDA to expedite the approval process for US pharmaceutical facilities, has ignited a wave of skepticism within the industry regarding its potential effectiveness, says GlobalData.
Kathryn Kinch, Senior Pharma Product Manager at GlobalData, comments, “The executive order mandates the FDA to increase fees and inspections for foreign manufacturing plants, but critics are raising eyebrows over the lack of clarity surrounding its implementation. Questions linger about whether the new regulations will apply universally or be limited to specific facilities, production lines, or products. As federal agencies scramble to develop actionable guidelines, the pharmaceutical sector watches closely.”
GlobalData’s Bio/Pharmaceutical Outsourcing Report notes as the industry grapples with these changes, major players are making significant investments in US manufacturing capabilities. Johnson & Johnson is set to invest a staggering $55 billion over the next four years, including a $2 billion biologics production site in North Carolina that promises to create 500 jobs. Similarly, Genentech has announced a $700 million investment in a new East Coast facility, expected to generate over 400 permanent positions.
Katarina Zahedi, Pharma Analyst at GlobalData, adds, “These investments reflect a growing trend among pharmaceutical companies to bolster domestic operations in response to geopolitical pressures and potential tariffs on imported pharmaceuticals.”
The Bio/Pharmaceutical Outsourcing Report is a monthly analysis of news and trends affecting pharmaceutical contract manufacturing organisations. The report lists the latest contract manufacturing agreements, opportunities and threats for CDMOs, M&A and financing of CDMOs, and emerging regulatory news.
