With sev­er­al large phar­ma com­pa­nies promis­ing bil­lions of dol­lars to reshore man­u­fac­tur­ing to the US, Pres­i­dent Don­ald Trump and the FDA have start­ed on plans that would give cur­rent and fu­ture do­mes­tic fac­to­ries a leg up.

The FDA on Tues­day said it is plan­ning on do­ing more sur­prise in­spec­tions of for­eign fac­to­ries, a day af­ter Trump signed an ex­ec­u­tive or­der de­signed to “stream­line” FDA fa­cil­i­ty in­spec­tions and shrink fac­to­ry con­struc­tion time­lines in the US.

FDA Com­mis­sion­er Mar­ty Makary said in a state­ment that over­seas fa­cil­i­ties have “en­joyed a dou­ble stan­dard” be­cause they are giv­en a heads-up be­fore in­spec­tions when US sites do not have the same warn­ing. The agency said it in­spects around 12,000 US sites and 3,000 for­eign fac­to­ries a year.

A lead­ing phar­ma­ceu­ti­cal trade group urged the De­part­ment of Com­merce not to place tar­iffs on the sec­tor as the win­dow for feed­back on the trade probe draws to a close.

“Tar­iffs are not the an­swer for pro­mot­ing greater do­mes­tic pro­duc­tion of these prod­ucts. On the con­trary, every dol­lar col­lect­ed in tar­iffs would be a dol­lar less that in­no­v­a­tive bio­phar­ma­ceu­ti­cal com­pa­nies are able to in­vest in US R&D, man­u­fac­tur­ing fa­cil­i­ties and in­fra­struc­ture,” PhRMA said in a 40-page com­ment.

Pres­i­dent Don­ald Trump is one step clos­er to im­ple­ment­ing po­ten­tial phar­ma levies as the pub­lic com­ment pe­ri­od on the Sec­tion 232 in­ves­ti­ga­tion ends at mid­night on Wednes­day. Trump said on Mon­day, dur­ing the sign­ing of a new ex­ec­u­tive or­der, that he will make an an­nounce­ment on the tar­iffs in the “next two weeks.”

Eli Lil­ly CEO David Ricks con­tin­ued his push­back against the Trump ad­min­is­tra­tion's plan to put tar­iffs on phar­ma­ceu­ti­cal prod­ucts made out­side the US, mak­ing some of the in­dus­try's most force­ful com­ments yet against the pol­i­cy.

"If the goal is to repa­tri­ate the sup­ply chain, I would say prob­a­bly the threat of tar­iffs has al­ready done that," Ricks said in an in­ter­view with Ya­hoo Fi­nance, which was pub­lished Thurs­day fol­low­ing the re­lease of the com­pa­ny's quar­ter­ly earn­ings.

Pres­i­dent Don­ald Trump has said that he wants to use the threat of tar­iffs to force drug­mak­ers to build more man­u­fac­tur­ing ca­pac­i­ty in the US. “We don’t make our own drugs any­more,” Trump said last month, adding that the trade penal­ties would force com­pa­nies to re­lo­cate. “The high­er the tar­iff, the faster they move. We’re go­ing to be do­ing that.”

Gilead is the lat­est phar­ma com­pa­ny to an­nounce that it’s pour­ing bil­lions of dol­lars in­to its man­u­fac­tur­ing and R&D op­er­a­tions in the US.

The com­pa­ny said Wednes­day that it’s in­vest­ing a to­tal of $32 bil­lion through 2030, and do­ing so will cre­ate an es­ti­mat­ed 800 di­rect jobs and 2,200 in­di­rect jobs. That in­cludes a pre­vi­ous­ly undis­closed $11 bil­lion, plus $21 bil­lion that it al­ready planned to spend.

It’s build­ing three new fa­cil­i­ties and up­dat­ing three more, in ad­di­tion to mak­ing oth­er in­vest­ments.

A hand­ful of drug­mak­ers re­spon­si­ble for pro­duc­ing some of the world’s top-sell­ing drugs have al­so an­nounced multi­bil­lion-dol­lar in­vest­ments in re­cent months for their US man­u­fac­tur­ing and R&D.

Te­va is plan­ning to re­duce its head­count by 8% by 2027, the com­pa­ny an­nounced on Wednes­day, as it en­ters the next phase of its years­long "piv­ot to growth" plan.

The cuts will im­pact man­u­fac­tur­ing and gen­er­al and ad­min­is­tra­tive roles, CEO Richard Fran­cis told End­points News in an in­ter­view about the com­pa­ny’s first-quar­ter earn­ings. Te­va first ini­ti­at­ed a broad­er re­struc­tur­ing plan in 2023, which has in­volved a con­sol­i­da­tion of its man­u­fac­tur­ing net­work, a shift away from some low­er-mar­gin gener­ics, and plans to sell off its API unit.

Fran­cis said Q1 was Te­va’s ninth con­sec­u­tive quar­ter of growth. The com­pa­ny gen­er­at­ed $3.9 bil­lion in first-quar­ter glob­al rev­enue, up 5% com­pared to the same pe­ri­od last year. Now that he’s fo­cused on ac­cel­er­at­ing that growth, “we re­al­ize that we have a re­al op­por­tu­ni­ty to trans­form Te­va,” he said.