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 includes the construction of six new manufacturing facilities, the expansion of three existing plants, and the establishment of a new research and development center.
The announcement comes amid ongoing trade tensions and tariff concerns under the Trump administration, which has been pushing major corporations to increase their manufacturing operations within U.S. borders. Novartis joins other pharmaceutical industry leaders like Eli Lilly, Merck & Co., and Johnson & Johnson in announcing significant U.S.-based capital expenditure programs.
The expansion represents a notable shift from Novartis’ recent strategy, which saw the company closing several U.S. facilities, including an R&D center in San Diego and manufacturing sites across North Carolina, Colorado, and Illinois. Between 2021 and 2024, the company had shuttered seven manufacturing locations.
Under the new plan, Novartis will construct two radiopharmaceutical manufacturing facilities in Florida and Texas, dedicated to producing cancer treatments such as Pluvicto and Lutathera. Additionally, the company will enhance operations at its existing facilities in Indianapolis, Millburn, New Jersey, and Carlsbad, California.
Locations for four additional facilities remain undetermined. Three of these plants will focus on biological drug substances, products, devices, and packaging, while the fourth will manufacture chemical drug substances, pills, and packaging materials. The investment will also mark Novartis’ first U.S.-based antisense oligonucleotide drug manufacturing operation.
A significant component of the investment includes a $1.1 billion biomedical research innovation hub in San Diego, scheduled to commence operations between 2028 and 2029. This development will substantially increase Novartis’ current annual capital spending, which has historically averaged around $1 billion.
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 projected growth in the American market. Despite the substantial capital commitment, Narasimhan expressed confidence in maintaining the company’s 2025 guidance and achieving its targeted core margin of over 40% by 2027.
The expansion will significantly enhance Novartis’ U.S. presence, which currently includes its subsidiary headquarters in New Jersey, an R&D hub in Cambridge, Massachusetts, and manufacturing facilities in Indianapolis and New Jersey. The company already produces some of its most sophisticated medicines, including cell and gene therapies, at its U.S. locations.
This strategic move positions Novartis to manufacture all medicines intended for U.S. patients within the country’s borders, providing greater supply chain security and aligning with current political pressures for domestic pharmaceutical production. The investment represents one of the largest commitments to U.S. manufacturing in the company’s history and signals a significant shift in its global manufacturing strategy.
The comprehensive expansion plan demonstrates Novartis’ long-term commitment to the U.S. market and its adaptation to evolving trade policies. With the first quarter 2025 results scheduled for release on April 29, the announcement reinforces the company’s confidence in its growth trajectory and operational strategy despite the current global trade uncertainties.
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