Billion-Dollar Bet on Homegrown Biologics

Merck’s $1B Delaware hub aims to cut drug imports and speed advanced therapies to patients.

7 May 2025

Merck & Co. has begun work on a $1bn biologics manufacturing site in Wilmington, Delaware, in a move intended to strengthen domestic pharmaceutical production and reduce dependence on overseas suppliers.

The 470,000 sq ft facility, scheduled to be fully operational by 2030, will focus on advanced biologic therapies, including next-generation cancer treatments. It will use mammalian cell fermentation and high-efficiency bioreactors to accelerate production and improve supply reliability.

The investment follows growing political and industry pressure to expand local manufacturing capacity after recent global supply chain disruptions. Merck said the site would help streamline delivery, enhance quality control and improve responsiveness during public health emergencies.

“This is more than just a plant; it’s a strategic leap toward pharma independence,” said one industry executive. “Wilmington will give us the control and agility needed to serve patients faster and more securely.”

The complex is designed as an integrated hub combining research, manufacturing and logistics, allowing quicker transitions from laboratory innovation to commercial production. It will feature real-time monitoring systems and flexible manufacturing processes in line with regulatory priorities set by the US Food and Drug Administration and other global authorities.

The company expects the project to create up to 4,000 construction jobs and support 500 permanent roles. With specialist biotech skills in short supply, Merck plans to work with academic institutions and technical training programmes to develop the workforce needed for the plant’s operation.

The Wilmington development reflects a broader shift in the pharmaceutical sector towards building domestic capacity for biologics, a class of complex drugs that now account for a growing share of new treatments, as companies seek to balance innovation with supply chain resilience.