Pharma tariffs punish industry investing billions in North Carolina

The NC Life Sciences Organization is profoundly concerned about the recently announced 100% tariff on brand-name pharmaceuticals made by President Donald Trump. This policy, if implemented, would have severe and far-reaching negative consequences for patients, the life sciences industry and the economic prosperity of North Carolina. We urge the North Carolina Congressional delegation, regulators, and other policymakers to oppose this misguided and harmful measure. 

North Carolina is a global leader in pharmaceutical manufacturing; a position earned through decades of investment and commitment from a diverse array of life sciences companies. Our state is proud to host major manufacturing operations for some of the world's leading pharmaceutical companies, including Amgen, Biogen, CSL Seqirus, FUJIFILM Biotechnologies, GSK, Lilly, Merck, Novartis, Novo Nordisk and Pfizer. 

In the last five years alone, we have seen an unprecedented wave of investment in North Carolina's pharmaceutical manufacturing infrastructure. Lilly has invested approximately $4 billion in new facilities in the Research Triangle Park and Concord. Novo Nordisk announced a $4.1 billion expansion of its Clayton facility. Johnson & Johnson is investing more than $2 billion to construct a new, state-of-the-art manufacturing campus for innovative biologics in Wilson. Biogen has announced a $2 billion investment in its Research Triangle Park facilities. 

In Holly Springs alone, Amgen and Genentech are investing over $1.5 billion and $700 million respectively in new manufacturing plants, and FUJIFILM Biotechnologies recently cut the ribbon on its new $3.2 billion large-scale cell-culture plant, the largest facility of its kind in North America. 

These massive, long-term investments underscore the industry's good-faith commitment to strengthening the U.S. pharmaceutical supply chain. Bringing a new state-of-the-art manufacturing facility online is a complex, multiyear process, often requiring a decade or more of planning, construction and rigorous regulatory approval. The industry is actively making these long-lead-time investments here in North Carolina to bolster domestic production, and sudden, punitive tariffs threaten to disrupt this vital progress.  

Beyond the global leaders manufacturing in the state, North Carolina's life sciences sector is characterized by a vibrant community of small and midsized pharmaceutical and biotechnology companies. These innovative firms are engines of discovery, often pioneering the next generation of life-saving therapies. They are a critical component of our state's innovation economy, and their success is intertwined with the broader health of the pharmaceutical industry.  

The proposed tariffs would disproportionately harm these smaller companies, who usually do not have the resources to start up a manufacturing operation of their own. These innovators must rely on contract manufacturers wherever they can find them to bring their new medicines to patients.  

Most importantly, the proposed tariffs would have a devastating impact on patients. A 100% tariff on brand-name pharmaceuticals would inevitably lead to higher drug prices, placing an unbearable burden on North Carolina families. Taking actions to directly raise drug prices is contrary to this administration’s stated goals and would severely restrict access to essential treatments for a wide range of conditions. This is a price our state and our nation cannot afford to pay. 

NCLifeSci strongly urges you to consider the detrimental effects of these proposed tariffs. We ask that you stand with North Carolina's patients, our innovative life sciences companies and our dedicated workforce in opposing this dangerous policy. Protecting and fostering our domestic pharmaceutical manufacturing base is a shared goal, but it must be achieved through thoughtful, pro-growth policies, not through punitive tariffs that will ultimately harm the very people we all serve.