Pharmaceutical behemoth Merck, headquartered in New Jersey, is investing a staggering $1 billion in a new manufacturing facility in Delaware.
The move is aimed at shifting the production of its top-selling cancer drug, Keytruda, to the United States, thereby accelerating the delivery of future drugs to the market.
According to American Military News, Keytruda is currently produced in Ireland and by contract manufacturers within the United States. This has drawn criticism from President Donald Trump, who has voiced concerns about Ireland serving as a low-cost drug production hub and tax haven, to the detriment of U.S. workers and tax revenue.
The forthcoming Merck complex in Wilmington is set to be a "cornerstone of our biotech future," as stated by CEO Robert W. Davis during the groundbreaking ceremony held on the former DuPont Co. chemical and office campus. He further declared it as "the future U.S. home for producing Keytruda for U.S. patients."
Despite the planned incorporation of robotics and artificial intelligence software in the manufacturing process, Davis assured that Merck would generate 500 new jobs in advanced manufacturing and research and development at the site by the time construction is completed in five years. The potential for thousands more drug development jobs in the long term was also highlighted.
Sanat Chattopadhyay, president of the companys manufacturing division, hailed this as a "significantly new era in drug development." He added that producing bio-based and complex therapies in the United States for the U.S. market "means we will be able to speed access to patients much faster."
The Wilmington site was chosen over competing locations in Pennsylvania, Maryland, North Carolina, Massachusetts, and other states where Merck has facilities. Earlier this year, Delaware officials approved grants of up to $30 million for the project to help attract Merck.
The pharmaceutical giant is one of the larger employers in the Philadelphia area, with approximately 14,700 staff distributed across its Upper Gwynedd Township offices, West Point manufacturing plants, and Spring House research labs, all in Montgomery County, and other area sites.
The company has plans to complete labs at the former DuPont Co. Chestnut Run research and production site at 984 Centre Rd. in Wilmington by 2028 and add manufacturing and offices by 2030.
Mike Wojewodka, president of developer MRA Group, dismissed the notion that Delawares gain is Pennsylvanias loss. He argued that both states are among those competing for biotech facilities, and both benefit from large regional employers expanding, regardless of the location of the facilities.
At the groundbreaking ceremony, Gov. Matt Meyer and New Castle County Executive Marcus Henry encouraged employees from Mercks Rahway, N.J., headquarters to relocate to Delaware, citing fewer layers of municipal government and strong state funding for public schools that keep property taxes lower than in the Garden State.
Merck intends to utilize robots, artificial intelligence software, and other new technologies at the Wilmington location. Among its objectives are to develop subcutaneous drug delivery for Keytruda, produce antibody-drug conjugates that combine biological disease-fighting cells with chemotherapy drugs, and streamline production to expedite new products to patients faster than older plants, according to Chattopadhyay.
The new Merck factory is being constructed alongside a rising Marriott Residence Inn, and a childcare center for workers families, among other amenities. Other tenants at the complex include DuPont, chemical maker Celanese, and Delaware-based biotech companies Solenis and Prelude.
The new plant is being established at a time when Philadelphia area biotech and bio manufacturing development has slumped following an investment boom in the late 2010s. However, Merck's significant investment signals a potential resurgence in the industry, reinforcing the importance of domestic production and the potential for job creation in the sector.
Login