Bayer to invest $2.2bn in new Ohio pharmaceutical site

Bayer (BAYN) is to invest $2.2bn in a new manufacturing site in New Albany, Ohio, as its pharmaceuticals division seeks to increase its revenue in the US.

The German group expects the facility to create about 600 high-paying jobs, with a further 1,500 temporary positions generated during construction. A drug substance manufacturing site is due to become operational in 2031, with a finished drug product site to follow in 2034.

The prescription drug unit has lifted the US share of its global revenue to 35 per cent from 20 per cent in 2018 and aims to double its US sales by the end of the decade, according to Sebastian Guth, chief operating officer for pharmaceuticals. Products expected to underpin that expansion include Kerendia, a treatment for chronic kidney disease, the prostate cancer drug Nubeqa and asundexian, a drug candidate to prevent strokes.

"It is a very deliberate decision to strengthen our presence in the United States, alongside our historically strong presence in Europe and our strong presence in Asia," Guth said.

The investment comes as US prescription drug prices remain far higher than in other developed nations. President Donald Trump has been pressing drugmakers to lower their prices, while also demanding that other developed countries pay more.