While Amgen is deepening its investment in US-based manufacturing capacity, BioNTech is moving in the opposite direction, consolidating its production footprint amid declining COVID-19 vaccine demand and a strategic shift toward oncology.

Amgen expands capacity amid supply chain and policy shifts
Amgen announced plans to invest an additional US$300 million in Puerto Rico to expand its manufacturing network, reinforcing a broader industry trend toward strengthening domestic production capabilities. The investment will support expansion of the company's biologicals manufacturing operations on the island and forms part of nearly US$2 billion in US manufacturing commitments made by the company over the past year. 

The move comes as pharmaceutical manufacturers face increasing pressure to localize production and strengthen supply chain resilience. Across the industry, companies have accelerated US manufacturing investments in response to threatened tariffs on imported medicines and broader efforts to reduce dependence on overseas production.

For biologicals and biosimilars manufacturers, manufacturing capacity remains a key competitive differentiator, particularly as demand for complex biological therapies continues to grow. Puerto Rico has long served as a major biopharmaceutical production hub, hosting large-scale manufacturing operations for several leading companies.

BioNTech restructures operations as COVID-19 demand wanes
In sharp contrast, Germany-based BioNTech revealed plans to close multiple manufacturing facilities in Germany and Singapore, affecting approximately 1,860 jobs, or about 22% of its workforce. The company will shut sites in Idar-Oberstein, Marburg and Tübingen, Germany by end of 2027, as well as complete its previously announced exit from a manufacturing facility in Singapore by the first quarter of 2027. 

The closures reflect the continued unwinding of pandemic-era manufacturing infrastructure. BioNTech said it expects excess capacity as COVID-19 vaccine volumes continue to decline and vaccine manufacturing responsibilities increasingly shift to partner Pfizer. The company is simultaneously seeking to reduce costs while redirecting resources toward its oncology pipeline and next-generation mRNA therapeutics.

Industry outlook: Different paths, common strategic goals
Taken together, the two announcements underscore a broader bifurcation emerging across the biopharmaceutical sector. Companies with diversified commercial portfolios and growing biologicals franchises are investing aggressively in manufacturing resilience and geographic expansion. Meanwhile, organizations that rapidly scaled production during the pandemic are now rationalizing assets to align capacity with post-COVID market realities.

For the biosimilars sector, these developments reinforce the strategic importance of manufacturing flexibility. As competition intensifies across therapeutic categories, the ability to efficiently scale production, manage costs and maintain supply reliability is likely to remain a critical factor shaping market leadership in the years ahead. 

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