A New Plant — $1 Billion Cap Ex, In Delaware — For Pembrolizumab “Backup”?

Our excellent Anon. shows us this morning that in a likely response to Tangerine's claim that he will punish US companies that don't bring manufacturing back stateside, Mr. Davis announced that Merck will build out a facility in Wilmington to the tune of $1 billion – as a back up producer of Pembrolizumab.

Sure, you know we agree that more US investment is a good thing, but international trade runs on "comparative advantage". I'm happy to see this news, and at the same time it can be undone pretty readily -- one, two or three years from now. [It will take over a year just to break around and all likelihood.] So this is more smartly saluting the naked emperor as he waddles on by, than much of anything else in my view.

. . .A cornerstone of Merck’s continued commitment to investing in American innovation and infrastructure, Merck Wilmington Biotech will comprise laboratory, manufacturing and warehouse capabilities to enable the launch and commercial production of next-generation biologics and therapies including potent antibody-drug conjugates (ADCs), reinforcing Merck’s focus on expanding and diversifying its pipeline. . . .

Now you know. . . these are indeed strange times -- with Merck announcing the same ground-breaking more than once, largely to make sure that Tangerine has seen it, before he starts talking about Pharma tariffs. In any event a $1 billion cap ex budget is decidedly immaterial to vast Mother Merck. Smile.

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