Shionogi & Co. is preparing to construct its first manufacturing facility outside Japan, selecting the United States as the location to produce its antibiotic cefiderocol by early 2029, according to people familiar with the matter. The move represents the latest effort by a foreign pharmaceutical company to relocate production ahead of threatened tariffs that could reach 250%.
The Osaka-based drugmaker joins a growing list of pharmaceutical companies announcing American manufacturing investments since President Donald Trump began threatening to impose substantial levies on imported medicines. Trump has suggested starting with modest tariffs before escalating to potentially punitive rates within 18 months, citing national security concerns over foreign drug dependence.
Cefiderocol, marketed as Fetroja in the US, treats serious infections caused by drug-resistant bacteria and generated significant revenue for Shionogi since receiving FDA approval. The company recently secured regulatory approval in South Korea and has been expanding the drug’s global footprint through partnerships and clinical data presentations.
However, industry analysts question whether relocating individual drug production will meaningfully reduce costs or tariff exposure, given the pharmaceutical industry’s complex global supply chains. Many active ingredients and raw materials still originate from countries like China and India, regardless of where final manufacturing occurs.
The announcement follows similar commitments from Eli Lilly, Johnson & Johnson and AstraZeneca, which have collectively pledged over $250 billion in US manufacturing investments. Critics suggest some companies are simply repackaging previously planned investments to curry favor with the Trump administration, rather than fundamentally restructuring their operations.