Novartis has announced its plans to invest $23bn over five years to strengthen its US-based manufacturing infrastructure, amid concerns over potential tariffs on medicine imports.
Through the investment, Novartis aims to ensure that all key medicines for US patients are manufactured domestically, by establishing 10 facilities, seven of which are new.
The initiative will enhance Novartis’ manufacturing, research, and technology presence in the US, creating nearly 1,000 jobs and around 4,000 additional jobs across the US.
The Swiss drugmakers’ production capacity will include active pharmaceutical ingredients (API), biologics drug substances, and secondary production and packaging.
The move follows the recent announcement of potential tariffs on the import of medicines into the US and the exemption on tariffs for 90 days, through an executive order.
Novartis CEO Vas Narasimhan said: “As a Swiss-based company with a significant presence in the US, these investments will enable us to fully bring our supply chain and key technology platforms into the US to support our strong US growth outlook.
“These investments also reflect the pro-innovation policy and regulatory environment in the US that supports our ability to find the next medical breakthroughs for patients.
“We are prepared for shifts in the external environment and fully confident in our 2025 guidance, mid- to long-term sales growth outlook and 2027 core margin guidance of 40%+.”
Over the next five years, Novartis plans to establish a biomedical research innovation hub in San Diego, California, its second global R&D hub in the US.
In addition, four new manufacturing facilities will be built in states yet to be determined, focusing on biologics drug substances, drug products, device assembly, and packaging.
One facility will specialise in chemical drug substances, solid oral dosage forms, and packaging.
Novartis will also build two new radioligand therapy (RLT) production facilities in Florida and Texas, while expanding three existing RLT facilities in Indiana, New Jersey, and California.
The investment includes a planned $1.1bn research hub in San Diego, which is expected to open between 2028 and 2029.
The facility will become the centre of Novartis’ West Coast Biomedical Research, complementing existing hubs in Cambridge, Massachusetts, and Basel, Switzerland.
The investments will provide Novartis with US manufacturing capacity for all its core technology platforms, including small molecules and biologics.
With the expanded capacity, the company aims to produce 100% of its key medicines end-to-end in the US, a significant increase from current levels.
