By Shirleen Guerra | The Center Square
(The Center Square) – While much of Washington remains shut down, Virginia just landed another multibillion-dollar pharmaceutical investment, this time from Merck.
Gov. Glenn Youngkin announced Monday that Merck will invest $3 billion to build a new 400,000-square-foot Center of Excellence for Pharmaceutical Manufacturing in Rockingham County.
The company said the project will create about 500 jobs, 8,000 construction jobs and expand its long-standing operations in Elkton, Va.
Merck has manufactured vaccines and other medicines there for nearly 85 years.
It is the second major pharmaceutical deal announced in Virginia this month, following AstraZeneca’s $4.5 billion investment in Albemarle County.
Together, the two projects represent $7.5 billion in private investment for the commonwealth.
That growth signals Virginia’s expanding life-sciences industry even as the federal government remains largely at a standstill.
Merck said the new Center of Excellence will focus on manufacturing active pharmaceutical ingredients and small-molecule medicines used in new treatments.
The project is part of the company’s $70 billion global investment plan in research, development and capital projects.
State officials said the project received $9 million in combined support from Virginia’s Opportunity Fund and the Virginia Economic Development Partnership.
Youngkin said the announcement “strengthens the Commonwealth’s position as the emerging national leader in biopharmaceutical advanced manufacturing and life sciences.”
Merck Chief Executive Officer Robert Davis said the investment “will help advance our goal of providing new, innovative treatment options for people facing serious health challenges in the U.S. and around the world.”
U.S. Sens. Mark Warner, D-Va. and Tim Kaine, D-Va., also praised the investment, calling it a sign of Virginia’s growing leadership in pharmaceutical manufacturing.
Warner said the expansion “is a testament to Virginia’s world-class workforce and business climate.”
Kaine noted Merck’s long history in Elkton, where the company helped produce the HPV vaccine Gardasil and continues to develop life-saving medicines for patients around the world.
Shenandoah Valley Partnership Executive Director Jay Langston said the project will strengthen the regional economy and position the Valley at the forefront of pharmaceutical innovation.
Rockingham County Board of Supervisors Chairman Joel Hensley called it a “proud and momentous occasion for Rockingham County.”
Together with Eli Lilly’s $5 billion expansion announced earlier this year, the Merck and AstraZeneca projects bring Virginia’s announced pharmaceutical investments to more than $12 billion so far in 2025.
With much of the federal government shut down, Virginia’s continued ability to secure large-scale private investment highlights its growing role as a national hub for advanced manufacturing and research.