Merck Increases Vaccine Production With New $1B Manufacturing Facility in North Carolina

Merck has inaugurated a fresh $1 billion, 225,000-square-foot manufacturing site at its extensive compound in Durham, N.C., intended for the production of bulk material for its very successful HPV vaccine, Gardasil.

Merck constructed the new facility on its 262-acre property, which it has inhabited since 2004, where the pharmaceutical giant manufactures several vaccinations, including those for rubella, chickenpox and measles.

The facility produced over 70 million units last year, with projections indicating a rise this year, according to a Merck representative via email. The complex now employs over 1,000 individuals.

The facility garnered national prominence during the COVID pandemic when Merck and J&J obtained a $105 million government funding in an unusual collaboration among major pharmaceutical companies to produce bulk material for J&J’s unsuccessful COVID-19 vaccine.

The move occurs as U.S. biopharmaceutical firms contemplate increasing domestic production of their goods. President Donald Trump has cautioned about the possibility of extending tariffs—beyond those now levied on Canada, China and Mexico—on imports from other nations, including a prospective 25% tax on medicines.

A couple of weeks ago in Washington, Eli Lilly announced a proposal to invest $27 billion in the construction of four new production facilities in the U.S., in addition to its existing substantial domestic network.

On Tuesday, Merck said that it had invested over $12 billion in enhancing its manufacturing and research and development capabilities in the country since 2018. The corporation has allocated an additional $8 billion for capital expenditure in the U.S. until 2028.

Sanat Chattopadhyay, Merck’s manufacturing head, said in a statement that the expansion in Durham represents a key milestone in their endeavours to enhance production as well as manufacturing capacities in the U.S.

A few weeks ago at the Chestnut Run Innovation & Science Park, Merck was awarded a grant of $30.2 million by the state investment board of Delaware. The money will allow Merck to establish a facility located outside of Wilmington. The funding was awarded as part of a process that included local planning and development, and the firm is continuing to investigate the other alternatives available to it.

Merck said that the new vaccination facility in Durham is outfitted with sophisticated technologies, including generative AI, data analytics and 3D printing. It encompasses digital twin technology, an electronic model capable of simulating process alterations prior to implementation and assisting in staff training.

Moreover, at the Durham location, Merck is constructing a facility to enhance the company’s capacity to manufacture the bladder cancer medication TICE BCG, a freeze-dried treatment delivered by catheter that has had persistent supply challenges for years.