Regeneron inks over US$3B manufacturing partnership with Fujifilm in the US

USA—Regeneron Pharmaceuticals has taken a significant step to boost its U.S. manufacturing capabilities by entering a 10-year partnership with Fujifilm Diosynth Biotechnologies, a leading contract development and manufacturing organization (CDMO).

Under this agreement, Regeneron will invest over US$3 billion to have Fujifilm produce bulk drug substances for its commercial biologic medicines at Fujifilm’s new facility in Holly Springs, North Carolina.

Unlike many pharmaceutical giants, Regeneron is opting for a strategic outsourcing approach rather than directly building its own manufacturing plants.

This deal will nearly double Regeneron’s current domestic manufacturing capacity, providing the company with additional production space and greater flexibility to respond to potential market changes, such as the looming threat of tariffs on pharmaceutical imports.

The Holly Springs site, which will begin operations later in 2025, is a cornerstone of Fujifilm’s global expansion.

The facility is part of a broader US$7 billion investment by Fujifilm across Europe and the United States.

It aims to bring online new production capacity and standardise manufacturing processes for efficient technology transfer and robust supply chain security.

The site will feature eight large bioreactors and will be integrated into Fujifilm’s global network, allowing for seamless scaling and technology transfer between regions.

Regeneron’s decision comes amid a wave of onshoring in the pharmaceutical industry.

For instance, Roche has committed to investing $50 billion over the next five years to expand its operations in the U.S.

Novartis plans to invest $23 billion in the construction and expansion of ten facilities, while Eli Lilly is allocating US$27 billion for four new plants.

 Additionally, Johnson & Johnson has set aside US $55 billion for the establishment and expansion of manufacturing sites across the country.

 This trend is largely driven by the threat of new tariffs targeting pharmaceutical imports, a policy focus of the current U.S. administration.

While some drugs have been temporarily exempted from tariffs, further duties are expected soon, prompting companies to secure domestic production to avoid supply disruptions and added costs.

In addition to this partnership, Regeneron is expanding its facilities by investing US $3.6 billion to enhance its campus in Tarrytown, New York.

This expansion is expected to create approximately 1,000 new jobs and improve research, manufacturing, and support capabilities.

 Regeneron is also building a new fill-finish facility in Rensselaer, New York, and has acquired a large property in Saratoga Springs for future production support and potential expansion.

Fujifilm, for its part, has already invested about US$4 billion in the U.S. to build advanced biopharmaceutical manufacturing sites and grow its technical workforce.

The Holly Springs expansion alone aims to create 1,400 new jobs in North Carolina by 2031

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