AbbVie to Invest $195 Million in US API Manufacturing

AbbVie is expanding its domestic API production in the United States with a $195 million investment in its manufacturing plant in North Chicago, Ill., the company announced on Aug. 12, 2025. (1). Construction on a new API facility at the site is scheduled to commence in the fall of 2025, with the facility expected to be fully operational sometime in 2027.

How the facility will advance innovation

AbbVie said the new site will allow the company to deepen its chemical synthesis capabilities in the US, supporting production of both current and next-generation medicines in such areas of concentration as neuroscience, immunology, and oncology (1). The investment is just one portion of a previously announced $10 billion capital commitment by AbbVie, intended to encourage innovation and expand critical manufacturing capability and capacity.

"Over the next decade, AbbVie will expand production of API, drug product, peptides, and medical devices in the US to support future medical breakthroughs," said Robert A. Michael, chairman and chief executive officer, AbbVie, in a company press release (1). "This is an important step to maintain US leadership in pharmaceutical innovation and deliver next-generation medicines that make a remarkable impact on patients' lives."

AbbVie on Trump’s list

AbbVie was one of 17 companies that received letters from US President Donald Trump on July 31, 2025, in a follow-up to previous correspondence between the White House and the pharmaceutical industry, outlining the steps each company must take within 60 days to lower prescription drug prices in the US to the lowest price offered among other developed nations, a strategy known as most-favored-nation pricing (2).

In June 2025, with companies strategizing their next domestic moves in the wake of the Trump administration’s enactment of high tariffs on key trade partners, AbbVie announced plans to acquire San Diego-based Capstan Therapeutics (3).

That transaction was analyzed by the panel for Episode 20 of Pharmaceutical Technology® Group’s “Behind the Headlines” series. Click here to view the full episode.

Others expanding their US footprints

Given these geopolitical shifts, AbbVie is hardly alone when it comes to doubling down on US investment and expansion. In the summer of 2025 alone, Hikma Pharmaceuticals USA announced it will invest $1 billion by 2030 to expand generic-drug R&D and manufacturing capabilities in Ohio and New Jersey; Piramal Pharma Solutions broke ground on a new sterile injectables development and manufacturing facility in Lexington, Ky.; AstraZeneca said it would invest $50 billion in manufacturing and R&D facilities in the US by 2030; and Bora Pharmaceuticals announced plans to invest in the expansion of manufacturing and packaging capabilities at its Maple Grove, Minn. facility (4–7).

Jason Waite, international trade expert at Alston & Bird, had much more to say about tariff impacts in a four-part video series available at PharmTech.com.

AbbVie is headquartered in Illinois and currently has a workforce of more than 11,000 employees, including 6000 jobs across 11 manufacturing sites in the US plus thousands of additional jobs at US suppliers (1).

References

1. AbbVie. AbbVie Announces $195 Million Investment to Expand Active Pharmaceutical Ingredient Manufacturing in the US. Press Release. Aug. 12, 2025.
2. The White House. Fact Sheet: President Donald J. Trump Announces Actions to Get Americans the Best Prices in the World for Prescription Drugs. WhiteHouse.gov, July 31, 2025.
3. AbbVie. AbbVie to Acquire Capstan Therapeutics, Further Strengthening Commitment to Transforming Patient Care in Immunology. Press Release. June 30, 2025.
4. Hikma Pharmaceuticals. Hikma Pharmaceuticals USA Announces $1 Billion of New US Investment to Further Expand its Domestic Manufacturing and Development of Essential Generic Medicines. Press Release. June 28, 2025.
5. Piramal Pharma Solutions. Piramal Pharma Solutions Breaks Ground on $90M Expansion Plan. Press Release. June 30, 2025.
6. AstraZeneca. AstraZeneca Plans to Invest $50 Billion in America for Medicines Manufacturing and R&D. Press Release. July 21, 2025.
7. Bora Pharmaceuticals. Bora Pharmaceuticals Announces Multi-Year Expansion for Midwest Manufacturing Site, as Upsher-Smith Entity Split is Finalized. Press Release. Aug. 5, 2025.