Merck Expansion Drives $3B Life Sciences Investment In Virginia

Merck has started construction on a $3B, 400K SF manufacturing facility in Elkton, VA, as part of its $70B national expansion plan.
The project, dubbed the Center of Excellence for Pharmaceutical Manufacturing, is expected to create 500 permanent jobs and 8K construction jobs by 2029.
Virginia continues to attract large-scale life sciences investments, with AstraZeneca and Eli Lilly also announcing multibillion-dollar developments in recent months.

Key Takeaways

Building On Legacy

Merck, in Elkton since the 1940s, is expanding with a new $3B facility beside its existing 1M SF site, reports Commercial Observer. The new 400K SF site represents a $7,500 PSF investment. It will focus on producing Active Pharmaceutical Ingredients (APIs), a growing strategic priority for US pharmaceutical self-sufficiency.

A Center Of Excellence

The facility, branded the Center of Excellence for Pharmaceutical Manufacturing, is part of Merck’s $70B US expansion. Other major projects are underway in New Jersey, Delaware, Kansas, and North Carolina. The Elkton site is scheduled for completion by 2029 and is expected to be a cornerstone in Merck’s small molecule production strategy.

Virginia’s Life Sciences Surge

Virginia is fast becoming a hotbed for pharmaceutical development. Alongside Merck:

AstraZeneca recently boosted its planned facility in Albemarle County by $500M, bringing the total investment to $4.5B.
Eli Lilly announced a $5B biomanufacturing project in Goochland County in September—more than double its initial investment.

These projects build on state and federal efforts to bolster domestic pharma manufacturing and reduce reliance on overseas supply chains.

Why It Matters

Pharmaceutical companies are increasingly choosing Virginia for large-scale developments due to its business-friendly climate, skilled workforce, and strategic location. State officials say Merck’s decision boosts America’s pharmaceutical manufacturing capacity. It also positions Virginia as a national biomanufacturing leader.

What’s Next

With major pharma investments, Virginia’s life sciences sector is set for long-term growth. As global supply chains shift and reshoring efforts accelerate, expect more high-stakes investments to follow.