Merck Sharp & Dohme is to create 120 new jobs at its factory in Ballydine, south Tipperary.
Half of the new jobs will be research and development posts and will be created over the next three years. The expansion is part of an €100 million IDA-supportive investment.
Minister for Enterprise Trade and Employment Micheál Martin said the investment was a boost for the region.
"We are delighted that the MSD plant in Ballydine is performing to such a level that it was selected for this cutting-edge R&D and clinical trials manufacturing facility," he said.
The new pharmaceutical manufacturing facility will enable the Ballydine plant to produce tablets and capsules for a number of new products in late-stage clinical trials and for new products coming onto the market.