Roche's Genentech Expands Investment in North Carolina Facility to $2B

Swiss pharma giant Roche’s RHHBY Genentech announced a significant expansion of its original investment in a new manufacturing facility in Holly Springs, NC.

Genentech will more than double the initial investment in a state-of-the-art biomanufacturing facility in Holly Springs to approximately $2 billion, fueling Roche’s intensifying focus on U.S.-based manufacturing, supply-chain resilience and next-generation therapeutic growth areas.

In May 2025, Genentech announced plans to invest more than $700 million in a new 700,000 square foot state-of-the-art drug manufacturing facility in Holly Springs. Thereafter, in August 2025, it broke ground on its manufacturing site in Holly Springs.

The expansion materially strengthens Roche and Genentech’s broader $50 billion manufacturing and R&D investment program in the United States.

We note that Roche and Genentech’s presence in the United States currently comprises 13 manufacturing sites and 15 R&D facilities across the Pharmaceutical and Diagnostics divisions, employing approximately 25,000 people at 24 locations in eight states.

Roche’s shares have surged 43.8% in the past year compared with the industry’s growth of 23%.

More on RHHBY’s Expansion Plans

Construction on the Holly Springs site began in August 2025, and the expanded facility is expected to become operational by 2029. The state-of-the-art facility will produce next-generation treatments for metabolic conditions, such as obesity.

By deploying advanced biomanufacturing technologies, automation, and digital capabilities, the investment is expected to enhance operational efficiency and sustainability while substantially strengthening Genentech’s U.S.-based supply chain.

This investment expansion is expected to create approximately 100 additional jobs in North Carolina. The expansion will also support more than 500 high-wage manufacturing positions and 1,500 construction jobs, further reinforcing Genentech’s role as a major economic driver in the region.

The decision to expand investment in this facility can be attributed to a highly skilled workforce, strong academic institutions and close proximity to leading life science companies in the Raleigh–Durham region.

Pharma Companies Ramp Up Production in the United States

Roche’s Genentech decision to double its investment in Holly Springs aligns closely with policy priorities in the United States aimed at reshoring pharmaceutical manufacturing and strengthening domestic innovation.

Most pharma/biotech bigwigs have announced plans to ramp up manufacturing in the country following President Trump’s tariff threat in April 2025 to boost domestic manufacturing.

Pharma conglomerate Johnson & Johnson JNJ recently announced plans to establish two new U.S. manufacturing facilities, including a next-generation cell therapy manufacturing site in Pennsylvania and a state-of-the-art drug product manufacturing facility in North Carolina.

This investment is part of JNJ’s previously announced $55 billion investment program in the United States, aimed at expanding domestic manufacturing, research and development, and technology capabilities by early 2029. Over the past 10 months alone, Jonnson & Johnson has committed billions of dollars to manufacturing initiatives in the United States, supporting its strategy to produce the vast majority of its advanced medicines domestically to meet the needs of U.S. patients.

Johnson & Johnson is also progressing construction on its $2 billion biologics manufacturing facility in Wilson, NC, which broke ground last year. The project is expected to generate approximately 5,000 skilled manufacturing and construction jobs.

In November 2025, another Swiss giant, Novartis NVS, announced plans to expand its presence in NC through the creation of a flagship manufacturing hub with fully integrated, end-to-end production capabilities. The strategic investment is aimed at ensuring that all key Novartis drugs for patients in the country are manufactured domestically and supplied nationwide at scale.

The expansion forms part of Novartis’ $23 billion investment in U.S.-based infrastructure over the next five years, aimed at significantly increasing manufacturing capacity and enabling 100% of the company’s key drugs to be produced end-to-end in the United States.

RHHBY’s Zacks Rank

Roche currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
 

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This article originally published on Zacks Investment Research (zacks.com).

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