Bristol Myers Squibb’s proposed $2.3 billion Houston campus is the latest of several U.S. projects planned by global pharmaceutical firms as they seek to increase domestic production and minimize effects of potential trade tariffs.
Princeton, New Jersey-based Bristol Myers said Monday it is planning a 600,000-square-foot project at Houston’s Generation Park business park that is expected to create nearly 500 skilled jobs after it comes online by 2030. Construction is slated to begin next year, with the project also on track to generate around 1,500 construction jobs.
The pharmaceutical giant said its selection of Houston “marks a significant milestone” in a larger $40 billion commitment to invest in the United States over five years as its bolsters operations including research and development, technology and domestic manufacturing.
Houston and Texas “offer the talent, infrastructure and partnership needed” as Bristol Myers builds domestic manufacturing capabilities to support next-generation development of medicinal breakthroughs, CEO Christopher Boerner said in a statement.
Several of Bristol Myers’ global rivals have announced similar planned expansions of U.S. drug production in the past two years, including Eli Lilly, Roche, Pfizer and Johnson & Johnson. Planned investments are expected to total about $500 billion at full buildout, according to the Pharmaceutical Research and Manufacturers of America, an industry trade group.
Tariffs are not mentioned in recent statements by Bristol Myers and its rivals. But the White House this year has reiterated plans to impose tariffs on certain imported pharmaceuticals, in a bid to encourage more domestic production.
Companies like Bristol Myers, Eli Lilly, Pfizer and AbbVie have also been expanding in other regions, such as San Diego, Philadelphia and North Carolina’s Research Triangle area. At Houston’s Generation Park, Eli Lilly plans to build a $6.5 billion manufacturing facility.
Bristol Myers said its planned Houston campus will have a modular design, allowing it to add and reconfigure manufacturing capacity as needed. The company is seeking to expand production of multiple types of medicines across a range of disease treatment areas, the company said.
In the same statement, U.S. Commerce Secretary Howard Lutnick said the Houston investment will create jobs and strengthen pharmaceutical supply chains, “ensuring America is never reliant on foreign sources for critical medicines.”
Texas Gov. Greg Abbott said the Houston project will provide Bristol Myers with “lower operating costs and easy access to markets across the U.S. and the world,” helping drive affordability for consumers.