Novartis announces fifth radioligand therapy manufacturing site in Texas as part of $23 billion U.S. investment

On February 25, Novartis announced plans to establish a new 46,000-square-foot radioligand therapy (RLT) manufacturing site in Texas, United States. Construction of the facility is scheduled to begin this year, with the site expected to become fully operational in 2028. The Texas RLT site will be Novartis' fifth RLT manufacturing facility in the U.S., marking further progress in Novartis' $23 billion U.S. investment plan.

Upon completion, the Texas facility will join Novartis' comprehensive RLT manufacturing network, which includes existing U.S. sites in New Jersey, Indiana and California, as well as the recently announced RLT facility to be constructed in Florida—providing RLT manufacturing capacity spanning the United States from coast to coast. Additionally, the facility will create new Novartis jobs in bioengineering, advanced manufacturing, quality and operations, supporting local economic growth.

Since taking office again early last year, President Trump has been pressuring pharmaceutical companies to move drug manufacturing to the United States and has proposed imposing tariffs on pharmaceutical imports. Under the pressure of potential tariffs, multiple multinational corporations (MNCs) including Novartis, Eli Lilly, Johnson & Johnson, and Roche have opted to make significant investments in the U.S. to enhance their domestic manufacturing capabilities, optimize supply chain operations, and mitigate tariff risks associated with imported products.

In April 2025, Novartis announced a plan to invest $23 billion in U.S. infrastructure over five years, aiming to ensure that all key medicines provided by Novartis to American patients will be manufactured in the United States. Based on this investment, over the next five years, Novartis will establish a biomedical research innovation center in California; build four new manufacturing plants across various U.S. states, of which three will produce biologic drug substances and finished drug products, and handle equipment assembly and packaging, while one will produce chemical drug substances, oral solid dosage forms, and handle packaging; construct two new RLT manufacturing facilities in Florida and Texas; and expand three existing RLT manufacturing facilities located in Indianapolis, Indiana; Millburn, New Jersey; and Carlsbad, California.

Through these investments, Novartis will gain manufacturing capabilities across all its core technology platforms in the U.S., including small molecules and biologics. This new investment will, for the first time, bring in-house production of Novartis' siRNA technology to the United States and reflects the company's commitment to increasing U.S.-based manufacturing across its key therapeutic areas, including oncology, immunology, neuroscience, and cardiovascular, renal and metabolism. With these new manufacturing capabilities, Novartis aims to achieve 100% end-to-end U.S. manufacturing of its key medicines.

Amid the risks of complex global geopolitics, supply chain instability, and frequent changes in tariff policies, MNCs' expansion of U.S. investments is primarily aimed at mitigating tariff risks, ensuring that production and supply of key products can be conducted domestically within the U.S., reducing dependence on overseas supply chains, and improving supply chain stability and reliability—thereby lowering costs and enhancing competitiveness.

However, the construction cycle for new facilities is lengthy. From design planning, civil engineering, equipment installation, to FDA inspection, worker training, and finally production launch, the process can take five years or even longer—while President Trump's term is only four years. It is worth noting that the investment plans announced by multiple MNCs, including Novartis, span five-year periods. Therefore, as policies evolve in the future, MNCs' investment implementation strategies may also change and adjust accordingly.

On February 4, Novartis released its 2025 financial results, reporting that its star radiopharmaceutical product Pluvicto achieved full-year revenue of $1.994 billion, representing a 42% year-over-year increase and making it the highest-selling radiopharmaceutical product globally to date. Behind the significant market growth of innovative radiopharmaceuticals like Pluvicto, however, lies the challenge of production and supply shortages. Previously, following Pluvicto's launch, analysts had projected that its sales would easily exceed $1 billion in 2023, but Pluvicto's actual sales in 2023 reached $980 million—with supply issues being the primary cause.

Regarding the research, development, and production of radiopharmaceuticals, several hurdles must be overcome: supply chain considerations, selection of appropriate isotopes, drug efficacy, and logistics during transportation. Among these, the supply chain stands as one of the critical factors affecting radiopharmaceutical sales. Unlike conventional drugs that can be stored for extended periods, radiopharmaceuticals contain isotopes with relatively short half-lives, resulting in product shelf lives that may be only a few days—posing significant challenges for drug delivery and transportation. Delays such as customs inspections for imports or transportation disruptions could render the drugs ineffective. This necessitates that pharmaceutical companies possess not only production capabilities but also distribution capabilities.

This is precisely the primary reason Novartis has chosen to establish manufacturing facilities in locations such as Texas, New Jersey, and Indiana. These facilities provide RLT manufacturing capacity spanning the United States from coast to coast, with locations within approximately a 12-hour drive of more than half the U.S. population. This means that after Novartis produces the products, densely populated areas including the East and West Coasts fall within a 12-hour drive radius from the facilities. If necessary, products can also be transported by air, greatly ensuring that medications can safely reach patients' healthcare teams and be administered.

Beyond the United States, Novartis has also established radioisotope production systems in other countries to address radiopharmaceutical shortages in the global market.

In late 2023, Novartis announced plans to build a radiopharmaceutical manufacturing base in China—the company's first radioactive drug production project in the country. The manufacturing base will be located in the Nuclear Technology Application (Isotope) Industrial Park in Haiyan County, Jiaxing City, Zhejiang Province, with a total expected investment exceeding RMB 600 million. Construction of the project broke ground in July 2024; in May 2025, the main construction work was completed as scheduled, with the primary facilities including production buildings and supporting infrastructure successfully topped out. The project has now entered the interior finishing phase and is expected to achieve production capacity by the end of 2026.

Additionally, Novartis has established radiopharmaceutical facilities in countries including Italy, Spain, and Japan, ensuring stable supply through its global production footprint. Novartis has indicated that once its own radiopharmaceutical production stabilizes, it would consider offering CDMO services.