Swiss pharmaceutical giant Novartis revealed plans Thursday for a massive $23 billion investment in U.S. manufacturing capabilities over the next five years, including the construction of six new factories, expansion of three existing facilities, and establishment of a new research and development center.
The comprehensive expansion plan comes amid ongoing trade tensions and tariff uncertainties under President Donald Trump’s administration. The initiative will enable Novartis to manufacture all medicines intended for U.S. patients within American borders, joining other major pharmaceutical companies like Eli Lilly, Merck & Co., and Johnson & Johnson in increasing their domestic manufacturing presence.
This strategic move marks a significant shift from Novartis’ recent U.S. consolidation efforts, which included shuttering an R&D facility in San Diego – ironically, now chosen as the location for their new $1.1 billion biomedical research innovation hub, scheduled to open between 2028 and 2029. The company had previously closed facilities across North Carolina, Colorado, and Illinois, with seven
manufacturing sites shut down between 2021 and 2024.
The expansion will significantly increase Novartis’ current capital expenditure, which has averaged approximately $1 billion annually in recent years. The plan will add six new facilities to their existing dozen, complementing their current U.S. presence, which includes subsidiary headquarters in New Jersey, an R&D center in Cambridge, Massachusetts, and manufacturing plants in Indianapolis and New Jersey.
Two new radiopharmaceutical manufacturing plants will be constructed in Florida and Texas, focusing on production of cancer treatments like Pluvicto and Lutathera. Additionally, the company will expand its existing facilities in Indianapolis, Millburn, New Jersey, and Carlsbad, California.
Locations for four additional facilities remain undetermined. Three of these will focus on biologics, including drug substances, products, devices, and packaging, while the fourth will manufacture chemical drug substances, pills, and packaging materials.
The investment will bring antisense oligonucleotide drug manufacturing to U.S. soil for the first time, adding to Novartis’ existing domestic production of complex medicines such as cell and gene therapies.
CEO Vas Narasimhan emphasized the strategic importance of the investment, stating that it will enable the company to fully integrate its supply chain and key technology platforms within the United States to support anticipated growth. He expressed confidence in the company’s ability to navigate trade disruptions, maintaining their 2025 guidance and mid- to long-term sales growth outlook, including their targeted core margin of over 40% by 2027.
The investment represents a dramatic increase in Novartis’ U.S. manufacturing presence, which currently includes 12 facilities. The expansion will be particularly focused on complex medicines, including cell and gene therapies, with new capabilities in antisense
oligonucleotide drug manufacturing being introduced to the U.S. market.
The announcement comes at a crucial time for the pharmaceutical industry, as companies adapt to evolving trade policies and increasing pressure to establish domestic manufacturing capabilities. The move also reflects a broader trend among major pharmaceutical companies to strengthen their U.S. manufacturing presence in response to political and economic factors.
This substantial investment demonstrates Novartis’ commitment to the U.S. market and its adaptation to changing global trade dynamics. The company is scheduled to release its first quarter 2025 financial results on April 29, where more details about the expansion plan may be revealed.
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