Novartis is betting big on American soil, unveiling a $23 billion expansion plan to build seven new facilities and shift key drug production stateside—just as President Trump threatens sweeping pharmaceutical tariffs.
At a Glance
- Novartis to invest $23 billion in U.S. operations over five years
- Seven new facilities planned, including two cancer therapy plants in Florida and Texas
- Approximately 1,000 Novartis jobs and 4,000 additional U.S. jobs expected
- Company aims to produce all U.S.-sold medicines domestically
- Investment follows Trump’s announcement of impending drug import tariffs
Strategic U.S. Expansion
Swiss pharmaceutical leader Novartis has announced a $23 billion investment to bolster its U.S. presence, focusing on manufacturing and research capabilities. Over the next five years, the company plans to construct six new manufacturing plants and a biomedical research hub in San Diego, California. Two of these facilities, dedicated to radioligand cancer therapies, are slated for Florida and Texas, according to Reuters.
This expansion is set to create approximately 1,000 jobs within Novartis and an estimated 4,000 additional positions in the broader U.S. economy, encompassing construction and support roles, as reported by the Wall Street Journal.
Watch Reuters’ report on Novartis’ U.S. investment plans.
Domestic Manufacturing Push
A key objective of this initiative is to ensure that all medicines sold by Novartis in the U.S. are manufactured domestically. This move aims to reduce reliance on foreign production and enhance supply chain resilience. The company has emphasized that localizing drug production is critical to long-term operational security and patient access.
The announcement comes shortly after President Donald Trump declared plans to impose significant tariffs on pharmaceutical imports, a policy shift that has sent ripples through the industry. While Novartis CEO Vas Narasimhan acknowledged that tariffs are a factor, he emphasized that the primary motivation is strategic growth and strengthening domestic capabilities, stating, “We believe we can manage the tariffs – though of course they will be very painful – so while that is a factor, it’s not the driving factor.”
Industry-Wide Implications
Novartis’ substantial investment reflects a broader trend among pharmaceutical companies to increase U.S.-based operations in response to potential trade barriers. Competitors like Eli Lilly and Johnson & Johnson have also announced multi-billion-dollar expansions of their U.S. facilities in recent years, seeking to safeguard supply chains and capitalize on domestic incentives.
The Pharmaceutical Research and Manufacturers of America (PhRMA) notes that establishing new production facilities can take up to a decade and cost around $2 billion, highlighting the significant commitment involved in such expansions. As the pharmaceutical industry navigates these changes, Novartis’ investment marks a significant step toward reshaping the landscape of drug manufacturing and research in the United States.
