Swiss pharmaceutical giant Novartis has unveiled an ambitious $23 billion investment plan to dramatically expand its manufacturing presence in the United States over the next five years. The
comprehensive initiative, announced Thursday, includes the
construction of six new manufacturing facilities, the expansion of three existing sites, and the establishment of a new research and development center.
The strategic move comes amid ongoing trade tensions and tariff concerns under President Donald Trump’s administration. Novartis joins other major pharmaceutical companies, including Eli Lilly, Merck & Co., and Johnson & Johnson, who have recently announced significant U.S. manufacturing investments in response to political pressure to increase domestic production.
The expansion represents a significant shift from Novartis’ recent consolidation efforts, which saw the closure of seven manufacturing sites between 2021 and 2024, including facilities in North Carolina, Colorado, and Illinois, as well as an R&D center in San Diego. Ironically, San Diego has now been selected as the location for a new $1.1 billion biomedical research innovation hub, scheduled to open between 2028 and 2029.
The investment plan includes two new radiopharmaceutical manufacturing facilities in Florida and Texas, designed to produce cancer treatments such as Pluvicto and Lutathera. Additionally, existing facilities in Indianapolis, Millburn, New Jersey, and Carlsbad, California, will undergo significant expansions.
Four additional manufacturing sites are planned, though their locations remain undetermined. Three of these facilities will focus on producing biologic drug substances, products, devices, and packaging, while the fourth will manufacture chemical drug substances, pills, and packaging materials.
This expansion will mark the first time Novartis will manufacture antisense oligonucleotide drugs in the United States, adding to its existing U.S.-based production of complex medicines, including cell and gene therapies. The investment represents a substantial increase in the company’s capital spending, which has historically averaged around $1 billion annually.
CEO Vas Narasimhan emphasized that the investment will enable Novartis to fully integrate its supply chain and key technology platforms within the United States, supporting the company’s strong growth outlook in the American market. He expressed confidence in meeting the company’s 2025 guidance and maintaining its target of achieving a core margin exceeding 40% by 2027, despite potential trade disruptions.
Currently, Novartis maintains 12 facilities in the United States, including its subsidiary headquarters in New Jersey, an R&D hub in Cambridge, Massachusetts, and manufacturing plants in Indianapolis and New Jersey. This new investment will essentially double the company’s U.S. manufacturing footprint.
The announcement highlights a growing trend among pharmaceutical companies to strengthen their U.S. manufacturing capabilities in response to geopolitical uncertainties and trade policy shifts. The move ensures that all medicines intended for U.S. patients will be manufactured domestically, potentially reducing supply chain vulnerabilities and addressing concerns about pharmaceutical manufacturing independence.
The comprehensive expansion plan demonstrates Novartis’ commitment to the U.S. market and its adaptation to evolving trade dynamics. With the first quarter 2025 results scheduled for release on April 29, this strategic initiative positions the company for sustained growth in the American healthcare sector while aligning with current political and economic pressures for domestic manufacturing capability.
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