Bristol Myers Squibb pledges US$40B to boost US operations

USA—Bristol Myers Squibb (BMS) has announced a major investment plan, committing $40 billion over the next five years to enhance its research, development, and manufacturing capabilities within the United States.

This initiative aims to strengthen domestic pharmaceutical production, improve supply chain control, and accelerate innovation through advanced technologies like artificial intelligence and machine learning.

CEO Christopher Boerner outlined these plans in an opinion piece for Stat News, emphasizing that the investment will support expanding U.S.-based research and development (R&D), boosting manufacturing infrastructure, and increasing production of radiopharmaceuticals.

 Boerner highlighted the strategic importance of aligning manufacturing closer to where most R&D activities occur to better manage complex supply chains.

This announcement follows similar moves by other major pharmaceutical companies, such as Thermo Fisher Scientific, which recently revealed plans to invest an additional US$2 billion in U.S. operations over four years.

These investments come amid ongoing trade tensions and tariff threats from the U.S. government, led by former President Donald Trump, who has cited national security concerns to justify potential tariffs on pharmaceutical imports.

Historically, the sector has been exempting from such tariffs due to the risks they pose to healthcare.

On May 5, 2025, Trump signed an executive order aimed at accelerating the approval process for pharmaceutical manufacturing plants in the U.S.

This order directs the Food and Drug Administration (FDA) to streamline regulatory reviews, collaborate closely with domestic manufacturers, and enhance enforcement regarding the sourcing of active ingredients from foreign producers.

The policy also contemplates publicly listing facilities that fail to comply with these regulations, all intended to promote domestic production and reduce reliance on imports during crises.

In addition to the investment plan, BMS recently agreed to acquire its cell therapy partner, 2seventy bio, for US$286 million, further expanding its capabilities in innovative treatments.

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