The news: British pharma company GSK plans to invest $30 billion in US drug manufacturing and R&D. This news coincides with President Trump’s UK state visit and broader pullback on UK investments by other drugmakers.

Zooming in: GSK’s pledge is the latest in a series of drugmakers’ commitments to build in the US, while the UK faces a sudden reversal of investments.

• More than a dozen pharma companies have now promised a total of $350 billion for new or expanded US manufacturing and R&D, per the Wall Street Journal. Those include Johnson & Johnson ($55 billion), AstraZeneca and Roche ($50 billion each), and Eli Lilly ($27 billion).
• Meanwhile, Big Pharmas including AstraZeneca, Eli Lilly, Merck, and Sanofi paused or stopped UK manufacturing projects over the past 10 days.

Zooming out: Since taking office, Trump has issued executive orders and warnings aimed at spurring more US manufacturing and lowering drug prices.

• He’s threatened US pharma product tariffs up to 250% but has since struck lower rate deals with the EU and Japan.
• Trump has advocated for a global equalization of drug prices, with a “most favored nation” directive and sent letters to 17 pharma companies demanding changes.
• He directed the FDA to loosen regulations to speed facility building, and increased foreign fees and inspections.

Why it matters: The US is the largest market for prescription drugmakers, so it makes sense that drugmakers are prioritizing the US. Increased US manufacturing and R&D can lead to stronger supply chains, more treatment innovations, and a boost to pharma companies’ reputation with Americans.

Our take: While Trump’s approach is working to boost manufacturing, the long-term effect on drug prices for consumers remains to be seen. The US healthcare system is made up of many players outside of pharma that have a say when it comes to prices.

For more US manufacturing to truly benefit consumers, it needs to be coupled with reforms in how drugs are priced, negotiated, and reimbursed. Without cooperation from the full supply chain—from pharma companies to providers, pharmacy benefit managers, insurers, and federal and state governments—manufacturing growth alone won’t guarantee lower prices for patients.

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