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Swiss pharmaceutical firm Novartis aims to establish seven new facilities and enhance its investment in the US following Donald Trump’s tariff declaration.
The six new facilities will be manufacturing plants.
Novartis, a pharmaceutical leader, disclosed its intention to build seven facilities in the United States and upgrade existing ones with a $23 billion investment over the next five years, shortly after President Donald Trump announced imminent tariffs on imported medications.
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Among these facilities, six will be manufacturing plants, with two focusing on radio ligand therapies in Florida and Texas. The locations for the other four plants have yet to be determined.
Moreover, the company has initiated the Biomedical Research Innovation Center in San Diego as part of this investment, along with the expansion of three production sites in Indiana, New Jersey, and California.
In a statement, Novartis remarked: “Novartis, the leading innovative drug company globally, has declared a five-year investment of $23 billion in US infrastructure, ensuring that all significant Novartis drugs for US patients are produced in the US.”
Today, Novartis, the world’s foremost pharmaceutical entity, revealed plans for a $23 billion investment over five years in US infrastructure, ensuring that all major Novartis drugs intended for US patients are manufactured domestically. This commitment will bolster Novartis’ existing manufacturing, research, and technological footprint across the nation with 10 facilities, including seven new ones, generating approximately 1,000 new jobs along with about 4,000 US jobs in Novartis. Production capacity will include both active pharmaceutical ingredients (APIs) and biological drug substances, in addition to secondary production and packaging.
In the next five years, Novartis will:
Establish a biomedical research innovation hub in San Diego, California, marking its second global R&D hub in the US
Construct four new manufacturing facilities in a yet-to-be-announced state, which will include three for biological drug substances, drug assemblies, and packaging, plus one for chemical substances and oral solid dosage forms.
Develop two new radio ligand therapy (RLT) manufacturing plants in Florida and Texas
Expand three existing RLT manufacturing plants in Indianapolis, New Jersey (Milburn), and California (Carlsbad).
With these investments, Novartis will enhance its manufacturing capabilities in the US for all primary technology platforms, including small molecules and biotechnology. The company already produces some of the most advanced treatments available in the US for local and global patients. This includes state-of-the-art technology platforms like gene therapy and RLT manufacturing. This new investment signifies the first instance of internal manufacturing of siRNA technology in the US, highlighting its dedication to boosting US manufacturing in vital therapeutic areas such as oncology, immunology, neuroscience, cardiovascular health, kidney function, and metabolism. Through these new manufacturing capabilities, Novartis can produce all major drugs entirely within the US, marking a significant increase from current production levels.
“As a Swiss-based organization with a significant presence in the US, these investments will enhance our supply chain and key technology platforms to support our robust growth expectations in the US. These investments are indicative of the US’s supportive policies and regulatory environment that facilitate patients’ access to medical breakthroughs. We maintain complete confidence in our projections for 2025, our medium to long-term sales growth outlook, and our 40%+ core margin forecast for 2027.”
This investment encompasses a planned $1.1 billion research hub in San Diego. It is designed to provide top-tier scientific infrastructure and capabilities for drug discovery to augment the efforts of Novartis scientists dedicated to innovating the future of medicine. The new facility, anticipated to start operations between 2028 and 2029, will become the cornerstone of Novartis’ West Coast biomedical research, complementing the existing hub in Cambridge, Massachusetts, and Basel, Switzerland.
Furthermore, the firm will enhance RLT manufacturing at its new locations in Florida and Texas. Novartis stands as the sole company with a specialized commercial RLT portfolio, developing global expertise in supply chains and manufacturing across its RLT production facilities. To accommodate the growing US demand for RLT, Novartis has already expanded its production capabilities in Milburn, New Jersey, upgraded its advanced facilities in Indianapolis, and is constructing its third US RLT manufacturing site in Carlsbad, California.
The US remains Novartis’ priority market, and the company has made numerous advancements throughout its 200-year history to build its infrastructure. In the next five years, Novartis anticipates a total investment of nearly $50 billion in its US operations, demonstrating a clear commitment to US-focused initiatives.
Donald Trump’s policies are proving effective.
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