Swiss pharmaceutical company Novartis announced plans to build seven new facilities in the United States and expand others as part of a $23 billion investment plan over the next five years. The move comes as President Trump has pledged to announce steep tariffs on imported pharmaceutical products and drugs.
In a press release, the company announced that it will be expanding its U.S.-based manufacturing operations across 10 facilities, seven of which will be brand new.
“Today, Novartis, a leading global innovative medicines company, announced a planned $23 billion investment over 5 years in US-based infrastructure, ensuring all key Novartis medicines for US patients will be made in the United States,” the European firm announced in a press release. With the new manufacturing capacity, Novartis will be able to produce 100 percent of its key medicines end-to-end in the United States.
In total, the plan will generate an estimated 1,000 new jobs, while thousands of others will be relocating to the United States, resulting in more than 4,000 American jobs.
As part of the plan, Novartis will be building a biomedical research innovation hub in San Diego, California, build four new manufacturing facilities in soon-to-be-determined states, including three that will make biologics drug substances, drug products, device assembly and packaging, and one facility that will make chemical drug substances, oral solids dosage forms and packaging, over the next five years.
The expansion will also include the construction of two new radioligand therapy (RLT) manufacturing facilities in Florida and Texas, while three existing facilities in Indiana, New Jersey and California will be updated.
“This new investment will bring internal manufacturing of the company’s siRNA technology to the US for the first time and reflects a commitment to increase US manufacturing across its main therapeutic areas: oncology, immunology, neuroscience, and cardiovascular, renal and metabolic. With new manufacturing capacity, Novartis will be able to produce 100% of its key medicines end-to-end in the US, a significant increase from current levels,” the press release added.
A look inside a Novartis facility in Indianapolis, Indiana
“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,” said Vas Narasimhan, CEO of Novartis. “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 percent +.”
The move comes after President Trump on Tuesday pledged to levy tariffs on drugs produced outside the United States.
“So we’re going to be announcing, very shortly, a major tariff on pharmaceuticals,” Trump said Tuesday night at a National Republican Congressional Committee (NRCC) dinner. “And…when they hear that, they will leave China, they will leave other places, because… most of their product is sold here.”
“And they’re going to be opening up their plants all over the place in our country,” the president added.