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Bristol Myers Squibb (BMS) plans to invest $40bn in the US over the next five years to bolster its research and manufacturing capabilities, reported Reuters.
BMS CEO Christopher Boerner first revealed the plans in an opinion piece published in Stat News, in which he stated that the funds will be allocated for research and development (R&D), on technology advancements, and in enhancing domestic manufacturing capacity.
Boerner also emphasised the importance of strengthening US manufacturing to gain better control over complex supply chains and align manufacturing closely to where most of the R&D activities occur.
He said: "Through this investment plan, we will strengthen our presence across the country, ramp up radiopharmaceutical manufacturing, and invest in artificial intelligence and machine learning to help us significantly increase the pace of innovation."
The investment plan comes amid US President Donald Trump’s tariff threats.
In recent months, several pharmaceutical companies have revealed intentions to increase their investments in the US in anticipation of tariffs on the industry.
Trump has consistently threatened to impose tariffs on pharmaceutical imports, citing national security concerns. For long, the sector has been exempt from such levies due to the potential negative consequences, reported Reuters.
On 5 May, Trump signed an executive order intended to expedite the approval process for pharmaceutical plants in the US, as part of new regulations to foster domestic manufacturing.
The order mandates the US Food and Drug Administration (FDA) to streamline reviews and collaborate with domestic manufacturers to offer early support.
Additionally, it directs the regulatory agency to enhance the enforcement of active-ingredient source reporting from foreign producers and to consider making public a list of non-compliant facilities.
The investment plan comes after BMS recently agreed to acquire its cell therapy partner 2seventy bio for $286m.
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"Bristol Myers Squibb announces $40bn US investment plan over five years" was originally created and published by Pharmaceutical Technology, a GlobalData owned brand.
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