Amgen Allocates $600 Million for Research Hub in California

On Tuesday, Amgen announced its plan to dedicate over $600 million to the construction of a new research and development complex at its base in Thousand Oaks, California. This initiative adds to the series of investments being made by pharmaceutical companies in the United States.

Facing potential tariffs proposed by President Trump on imported pharmaceuticals, drug manufacturers are increasingly looking to expand their operations domestically. Trump expects these measures will prompt companies to move production back to the U.S., following significant declines in local pharmaceutical manufacturing over the last ten years.

According to Amgen, the construction of this new facility will commence in the third quarter of the year, aiming to generate numerous job opportunities in the U.S.

Interestingly, this development is not for drug production, but is intended to offer a collaborative space for researchers, engineers, and scientists. The goal is to innovate treatments for patients with severe illnesses, using the building's state-of-the-art automation and digital tools.

In a statement, Amgen’s CEO, Bob Bradway, expressed the company’s commitment: 'We are dedicated to nurturing American scientific and innovative advances. This new center will equip our researchers with the latest tools and a collaborative setting to ignite the next wave of discoveries and improve healthcare.'

Since the Tax Cuts and Jobs Act became law in 2017, Amgen has invested close to $5 billion directly into U.S. infrastructure. This past April, they revealed plans for a $900 million growth at their Ohio biotechnology manufacturing site. Additionally, last December, Amgen shared intentions to construct a second drug material facility in Holly Springs, North Carolina.

These strategic moves align with recent actions by the U.S. Food and Drug Administration aimed at simplifying the establishment of new pharmaceutical manufacturing facilities in the country. The White House notes the current timeline for constructing these plants spans five to ten years, which poses a concern from a national safety perspective.