Pharmaceutical Manufacturers NAICS 3254

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Industry Summary
The 2,300 pharmaceutical manufacturers in the US are engaged in researching, developing, manufacturing and marketing chemically-derived drugs and biologicals for human or veterinary use. A few large, multinational firms dominate the industry; but there are also a large number of smaller start-up or development firms, particularly in the biotech segment.
Competition From Generic Products
Branded prescription drugs face competitive challenges from generic pharmaceutical manufacturers.
Expanded Managed Care Influence
Managed Care Organizations (MCOs), Medicaid, and other government agencies continue to seek price discounts on or increased rebates for pharmaceuticals.
Recent Developments
Sep 2, 2025 - Federal Appeals Court Rules Against Trump Administration Tariffs
- The US Court of Appeals for the Federal Circuit has ruled that President Trump overstepped his authority when he declared national emergencies to justify tariffs on many countries. Pharmaceutical manufacturers are likely to benefit if the cost of goods imported from countries that were hit with tariffs decrease. US law “bestows significant authority on the president to undertake a number of actions in response to a declared national emergency, but none of these actions explicitly include the power to impose tariffs, duties, or the like, or the power to tax”, the court said in the 7-4 ruling. Many of President Trump’s steep tariffs are “unbounded in scope, amount and duration”, the ruling added, and “assert an expansive authority that is beyond the express limitations” of the law his administration has cited. The court said that the ruling would not take effect until October 14. The Trump administration is expected to appeal the ruling to the US Supreme Court.
- Only 17% of pharmaceutical industry organizations surveyed by data security firm Kiteworks have implemented automated controls to prevent sensitive data from leaking through AI tools. The remaining 83% depend on human-centered approaches: Forty percent rely on employee training sessions and periodic audits, essentially hoping staff will remember and follow the rules when working under pressure. Another 20% send warning emails about AI usage but never verify compliance. Ten percent have only issued guidelines, while 13% have no policies whatsoever. These organizations — including many contract development and manufacturing organizations — operate without basic technical safeguards while their employees paste molecular structures, clinical trial results, and patient records into ChatGPT, Claude, Perplexity, and other AI platforms, according to Kiteworks.
- President Trump said during a meeting with pharmaceutical and technology industry executives that companies which move their operations to plants in the US would face no tariffs, according to The Guardian. He also suggested that companies would have the time needed to repatriate some manufacturing with new or expanded operations in the US before they would face a “tariff wall”. President Trump paused his “reciprocal” tariffs for 90 days after they prompted a sell-off of US government bonds in April but he has repeatedly threatened to carry through with sectoral tariffs on the pharmaceutical industry.
- Pharmaceutical manufacturing industry employment and wages for nonsupervisory employees increased slightly during the first five months of 2025, according to the US Bureau of Labor Statistics (BLS). Pharmaceutical manufacturers raised their prices slightly during the first half of 2025, according to the BLS.
Industry Revenue
Pharmaceutical Manufacturers

Industry Structure
Industry size & Structure
An average pharmaceutical manufacturer generates about $102.5 million in annual revenue and has about 152 employees.
- The pharmaceutical manufacturing industry consists of about 2,300 companies with $236 billion in sales and 350,500 employees.
- A few large, multinational firms dominate the industry, but there is also a large number of smaller, start-up, or development firms, particularly in the biotech segment.
- Large pharmaceutical manufacturers include Pfizer, Merck, Johnson & Johnson, Eli Lilly, and Bristol-Myers Squibb.
- The states with the highest number of pharmaceutical manufacturers are California, New Jersey, New York, Florida and Texas.
- The largest concentration of biotech firms are in California, Texas, Pennsylvania, Massachusetts, and Wisconsin.
Industry Forecast
Industry Forecast
Pharmaceutical Manufacturers Industry Growth

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