KEY POINTSFuji Keizai survey shows 25 Japanese drugmakers’ capital spending reaches 946 billion yen in 2025, about 50% above 2022Capital expenditure rises to about 6% of sales from 5% as manufacturers invest in newer drug modalities and domestic capacityReport cites domestic factory construction, U.S.-focused overseas investment, and smart-factory upgrades using AI and robotics
Capital investment by 25 Japanese pharmaceutical firms is projected to reach 946 billion yen in 2025. Note: Japanese text in the original image from press release has been translated into English by our editorial team.
Fuji Keizai
Capital spending by 25 Japanese pharmaceutical companies rose to 946 billion yen ($5.77 billion) in 2025, about 50% higher than in 2022, according to a survey released on July 28 by market research firm Fuji Keizai.
The study found that capital expenditure as a share of sales for the 25 companies increased to about 6% in 2025 from 5% in 2022. Several companies more than doubled their investment over the period.
Fuji Keizai said the increase reflects demand for more advanced production sites that can handle newer drug modalities, including antibody-drug conjugates, mid-sized molecule medicines and mRNA vaccines. The firm also cited a rise in new domestic factory construction as drugmakers bring production back to Japan or diversify manufacturing locations for business continuity planning and economic security reasons.
The report also pointed to active overseas investment, including spending aimed at supplying the U.S. market in anticipation of future tariff risks. Support measures from Japan’s Ministry of Economy, Trade and Industry, including a program to strengthen biopharmaceutical manufacturing bases for vaccine production, have also encouraged new plant construction, while companies are improving efficiency through smart-factory investment using AI and robotics.
Fuji Keizai said the report analyzes capital investment trends and production strategies at 25 domestic pharmaceutical companies from 2022 to 2025, including future investment plans and the use of in-house production and contract manufacturers. It also provides an overview of production sites at 62 Japanese and overseas pharmaceutical companies.
According to the release, the research was conducted from April to May 2026 through interviews by Fuji Keizai researchers with participating companies, related businesses and organizations, combined with literature research and the firm’s internal database.
Japan’s pharmaceutical industry has been expanding manufacturing capacity for biologics and other advanced therapies as product development shifts beyond conventional small-molecule drugs. In Japan, CMO and CDMO refer to contract manufacturing organizations and contract development and manufacturing organizations that make pharmaceuticals on behalf of drug companies.
The report, titled “2026 Edition: Analysis of Capital Investment and Production Strategies in the Pharmaceutical Industry,” was compiled by Fuji Keizai’s life sciences division.
$1 = 164 yen