Novartis, a pharmaceutical company, announced plans to build seven facilities in the United States and expand other facilities with a $23 billion investment over five years, shortly after President Donald Trump announced upcoming tariffs on imported drugs.
Swiss has revealed its major investments in the press release.
“This commitment will allow Novartis to expand the current manufacturing, research and technology presence across the country, with 10 facilities including seven new facilities, creating around 1,000 new jobs at Novartis and expanding around 4,000 US jobs.” I said.
Six facilities are manufacturing plants, two of which will focus on radio ligand therapies in Florida and Texas. It is still unknown where the other four plants will be built.
Additionally, the company has established the Biomedical Research Innovation Center in San Diego as part of its investment, expanding three production facilities in Indiana, New Jersey and California.
The company also noted that its goal is to ensure that “all important Novartis drugs in US patients are being performed in the US.”
On Tuesday, Trump pledged to impose tariffs on drugs produced in particular in other countries.
https://www.youtube.com/watch?v=w5-7wxzlfle
“So we're going to announce major tariffs on drugs soon,” Trump said at a dinner at the National Republican Congressional Committee (NRCC) on Tuesday night. “And… when they hear that, they'll leave China, they'll leave elsewhere, because most of their products are sold here.”
“And they'll open up plants all over our country,” he added.
Trump doubled his statement on Wednesday.
“We've realized that amid Covid we're not making medicines or medicines in this country,” Trump told reporters.
However, Novartis CEO Vas Narasimhan denied that potential tariffs were the main impact behind the move, according to Reuters.
“I believe we can do it Manage customs duties – Of course, they are very painful, but that is a factor (behind this investment), but it is not a driving factor,” Narashimhan said.
This is the latest in an influx of investment into the US since Trump took office and began warning and impose on his tariff policy. Stargate, a joint project between Openai, Oracle and Softbank, has pledged to invest $500 billion in the US, and Apple has announced that it has invested $500 billion in the US.
