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Merck Sharpe and Dohme said the additional funding would go towards the first phase of its new vaccines and biologics facility.
The total investment made by the firm now stands at €220m.
It is expected an additional 160 building jobs will be created at the site, following the latest investment announcement.
The project will eventually employ around 460 during construction.
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Work started at the site last October, and is expected to be finished by 2011.
Dr Michael Thien, Vice-President Science, Technology and Global Pharmaceutical Commercialisation, Merck Manufacturing Division, said that the additional investment is a further indication of Merck Sharp & Dohme’s long-term commitment to Ireland and Carlow.
"Merck Sharp & Dohme is delighted to deepen our roots further in Ireland," he said.
"This €20m additional investment in Carlow will take our Biologics facility to the next level. Biologics is a central part of the future, both for us as a company and for public health around the globe.
"In making this investment, we are demonstrating Merck Sharp & Dohme's commitment to pioneering enhancements in biologics, vaccines and other products and in doing so, placing Ireland and Carlow at the forefront of our plans," he added.
(PR/JM)
