Amgen Invests $600 Million in New R&D Facility in California

Thousand Oaks, California, September 3, 2025

News Summary

Amgen has announced a $600 million investment in a new research and development center located in Thousand Oaks, California. Set to begin construction in the third quarter, this facility aims to enhance collaboration among scientists and focus on next-generation drug discovery. The investment responds to industry challenges, including U.S. import tariffs and supply chain issues, and aligns with a broader trend of major drugmakers increasing domestic investments to strengthen U.S. drug supply chains.

California: Amgen to Invest $600 Million in New R&D Facility

Amgen, a leading biotechnology company, has announced plans to invest $600 million in a new research and development (R&D) center located in Thousand Oaks, California. Construction of the facility is set to begin in the third quarter of this year, aiming to consolidate Amgen’s research efforts under one roof.

The upcoming facility is designed to enhance collaboration among researchers, engineers, and scientists, focusing specifically on next-generation drug discovery. Unlike typical manufacturing sites, this center will not produce drugs but will provide advanced tools and resources necessary for scientific discovery and innovation.

Strategic Response to Market Dynamics

Amgen’s investment comes in response to challenges such as U.S. import tariffs and ongoing supply chain pressures. In light of recent industry trends, Amgen is taking proactive steps to expand its domestic research and production capabilities. The company currently owns nearly 2 million square feet of biotech space within the Conejo Valley, located approximately 40 miles west of Los Angeles.

The investment aligns with a broader trend within the pharmaceutical industry, where 15 major drugmakers are projected to invest over $270 billion in U.S. projects by 2025. This reflects a staggering 185% increase in demand for biomanufacturing, as reported by the commercial real estate firm JLL. Other companies, such as Alexandria Real Estate Equities, have already added significant lab space this year in anticipation of rising demand for biotech facilities.

Supporting Domestic Production

Amgen’s R&D facility is part of a strategic move to reinforce U.S. drug supply chains and enhance domestic scientific research capabilities. The company has previously dedicated funds for expansions in manufacturing, including a $900 million enhancement of its facility in Columbus, Ohio, and a $1 billion investment in a second site in Holly Springs, North Carolina.

In addition, the U.S. government has been facilitating this shift by introducing programs aimed at streamlining the approval process for new drug manufacturing sites. The Food and Drug Administration (FDA) has contributed to these efforts, which include efforts by the White House to reduce construction timelines for pharmaceutical facilities that can often take up to ten years to complete.

The Tax Cuts and Jobs Act of 2017 is recognized as a significant catalyst for these domestic investments, with expectations that new legislation will continue to support this growth trajectory. Amgen’s CEO has underscored the importance of this investment in bolstering the U.S. research sector and reducing reliance on foreign markets.

Industry-Wide Implications

Amgen is not alone in its endeavors; other pharmaceutical giants such as AstraZeneca, Eli Lilly, Sanofi, and Novartis have recently announced substantial investments in the U.S. market. This reflects a wider movement toward reshoring pharmaceutical production, prompted by concerns about dependency on foreign supply chains within the healthcare sector.

Conclusion

With an aim to innovate and strengthen domestic capabilities, Amgen’s new R&D center in Thousand Oaks signals a commitment to advance drug discovery processes while adapting to evolving market conditions. The facility represents a significant investment in the future of biotechnology in the United States.

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