Japan Pharma Capex Surges 50% as Companies Invest in Advanced Drugs

Japan's pharmaceutical industry is investing heavily in new production sites and technologies to handle more advanced drugs. According to a survey by market research firm Fuji Keizai, capital spending by 25 Japanese pharma companies rose to 946 billion yen ($5.77 billion) in 2025, a 50% increase from 2022.

The study found that the increased investment is driven by demand for production sites capable of handling newer drug modalities, such as antibody-drug conjugates and mRNA vaccines. This includes new domestic factory construction, with some companies more than doubling their investment over the period.

Overseas investment is also on the rise, particularly in the US market, where companies are investing to mitigate potential tariff risks. The Japanese government's support measures for biopharmaceutical manufacturing bases have encouraged new plant construction, while smart-factory investments using AI and robotics are improving efficiency.