Bayer plans to put $2.2 billion into building a pharmaceutical manufacturing site in New Albany, Ohio, the company said Friday. The plant will produce treatments for cancer, heart conditions and kidney disease, with operations targeted to start in 2031. Hiring tied to the project is expected to be about 600 roles. Asked whether the new US tariffs swayed the decision, Sebastian Guth - Bayer's COO and head of US operations - said, "It's a long-term decision and one that consistently implements our strategy."
The announcement comes shortly after US duties on imported medicines began at the end of September. Those tariffs are likely to pressure Bayer's margins on key products such as Kerendia, a kidney and heart therapy made in Germany, and Nubeqa, a prostate cancer medicine produced in Finland.
"The US is our largest and fastest-growing market," Guth said.
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Bayer is working to revive growth in its pharma unit amid generic pressure on older drugs such as Xarelto. Beyond Nubeqa and Kerendia, Bayer is also counting on pipeline launches such as the stroke therapy candidate Asundexian, currently under US review. Separately, Bayer is trying to move past US litigation tied to Roundup, inherited with Monsanto in 2018.
For everyday investors, the takeaway is straightforward: Bayer is committing serious capital to US manufacturing while tariffs and courtroom outcomes remain swing factors. That mix can shape how quickly new therapies hit the market and what margins look like as its US footprint grows.
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