Mumbai-based Piramal Pharma Limited announced a $90 million investment plan for expanding two of its US facilities, citing the growing trend toward onshoring drug supply chains back to the United States. The expansion targets the company's existing sites in Lexington, Kentucky and Riverview, Michigan.
"Since its inception, Piramal Pharma Limited has invested $570 million in its US drug development and manufacturing capabilities," said Peter DeYoung, Chief Executive Officer of Global Pharma. "The US is our largest market, where we currently employ approximately 750 people. Expanding the capacities and offerings in these two plants will support our customers who value our offerings in an onshore setting."
Kentucky Facility Expansion
The Lexington site, which specializes in sterile compounding, liquid filling, and lyophilization for injectable drug products, will receive $80 million of the total investment. This expansion was initially announced in September 2024 and includes:
- Addition of 24,000 square feet of commercial-scale manufacturing space
- Construction of a new laboratory
- Installation of state-of-the-art equipment, including:
- A new filling line
- Two commercial-sized lyophilizers
- A capping machine
- An external vial washer
These enhancements are expected to be completed and operational by late 2027, significantly boosting the site's production capabilities for sterile injectable medications.
Michigan Facility Enhancement
The Riverview facility, known for its expertise in developing and manufacturing active pharmaceutical ingredients (APIs) and high-potency APIs (HPAPIs), will receive the remaining $10 million investment. The site will add a commercial-scale suite dedicated to the development and manufacturing of payload-linkers, critical components used in antibody-drug conjugates (ADCs) and other bioconjugate drugs.
This new capability is expected to be operational by the end of 2025, much earlier than the Kentucky expansion. The Michigan facility will play a key role in Piramal's integrated ADC development and manufacturing program, "ADCelerate," which aims to accelerate development timelines for these complex therapeutics.
Strategic Timing Amid US Policy Shifts
The investment announcement comes at a significant moment in US pharmaceutical manufacturing policy. The expansion plans align with recent actions by President Donald Trump's administration, including new tariff policies and an executive order signed on May 5, 2025, directing the FDA and Environmental Protection Agency to reduce regulatory barriers for prescription drug manufacturing sites.
Following this executive order, the FDA announced on May 6 its intention to expand unannounced inspections at foreign manufacturing facilities, further incentivizing pharmaceutical companies to consider US-based production.
Industry Context: The Reshoring Movement
Industry experts have highlighted the growing complexity of pharmaceutical supply chains in the current geopolitical environment. Brad Stewart, BDO's national life sciences co-leader, recently noted that while reshoring manufacturing services can be more expensive, it helps "de-risk supply chains, particularly as tariffs and uncertainty continue to affect global operations."
"If I can move some of that capacity back in the United States, look to do more of the work here so that I'm not worried about what the taxes or tariffs or anything else may be going forward, those are just things that allow me to focus on my core business of making products to help save people's lives," Stewart explained.
Piramal's investment represents a significant vote of confidence in US-based pharmaceutical manufacturing, joining a broader industry movement to secure supply chains through domestic production capabilities. With previous investments in Sellersville and Bethlehem, Pennsylvania, the company continues to strengthen its US manufacturing footprint, bringing its total investment in US drug development and manufacturing capabilities to $570 million since its inception.
The expansion projects are expected to create additional jobs and enhance the company's ability to serve US customers with domestically produced pharmaceutical products and services.
