Novartis Announces $23 Billion Investment to Expand U.S. R&D and Manufacturing Over Next Five Years

On April 10, Novartis, a globally leading innovative pharmaceutical company, announced plans to invest $23 billion in U.S. infrastructure over the next five years to ensure that all critical drugs provided by Novartis for American patients will be manufactured in the United States. This commitment will enable Novartis to expand its existing manufacturing, research, and technology operations nationwide, with 10 facilities, including seven brand-new ones, creating nearly 1,000 new jobs for Novartis and adding approximately 4,000 jobs across the United States. Production capacity will cover active pharmaceutical ingredients (APIs) and biologics raw materials, as well as secondary production and packaging.

In the next five years, Novartis will:

Establishing a Biomedical Research and Innovation Center in San Diego, California, which is its second global R&D center in the United States.

Construction of four new production facilities in the upcoming state, three of which will produce biologics, active pharmaceutical ingredients, drug assembly and packaging, and one will produce chemical active pharmaceutical ingredients, oral solid dosage forms and packaging.

Building Two New Radioligand Therapy (RLT) Manufacturing Plants in Florida and Texas

Expansion of three RLT manufacturing plants in Indianapolis, Indiana, Millburn, New Jersey, and Carlsbad, California

Through these investments, Novartis will have the manufacturing capability for all core technology platforms in the United States, including small molecules and biologics. Novartis already produces some of the most innovative and advanced therapies for patients in the U.S. and around the world. This includes cutting-edge technology platforms such as gene and cell therapy and RLT manufacturing. This new investment will bring the internal manufacturing of the company’s siRNA technology to the U.S. for the first time and reflects its commitment to increasing U.S.-based production across key therapeutic areas, including oncology, immunology, neuroscience, and cardiovascular, renal, and metabolic diseases. With the new production capabilities, Novartis will be able to manufacture 100% of its critical medicines end-to-end in the U.S., a significant increase from current levels.

Novartis CEO Vas Narasimhan stated:"As a Swiss company with significant operations in the United States, these investments will enable us to fully integrate our supply chain and key technology platforms into the U.S. to support our strong growth prospects in the country. These investments also reflect the U.S.'s policy and regulatory environment that supports innovation, which helps us find the next medical breakthrough for patients. We are prepared for changes in the external environment and are confident in our guidance for 2025, our mid-to-long-term sales growth outlook, and our guidance of over 40% core operating margin by 2027."

This investment includes an $1.1 billion research center newly planned in San Diego, a state-of-the-art research facility that will provide world-class scientific infrastructure and drug discovery capabilities to strengthen Novartis scientists' efforts to reimagine the future of medicine. The new complex, expected to open between 2028 and 2029, will become the hub of Novartis’ West Coast biomedical research center, complementing existing centers in Cambridge, Massachusetts, and Basel, Switzerland.

In addition, the company will expand its RLT manufacturing facilities in Florida and Texas. Novartis is the only organization with a dedicated commercialized RLT product portfolio and has established global expertise within its network of RLT production facilities, possessing specialized supply chain and manufacturing capabilities. To support the growing demand for RLT in the United States, Novartis has expanded its production capacity in Millburn, New Jersey, established a state-of-the-art facility in Indianapolis, Indiana, and is currently constructing a third U.S. RLT manufacturing plant in Carlsbad, California.

The United States is a priority market for Novartis, and the company has taken numerous steps over its 200-year history to build its U.S. infrastructure. Over the next five years, the total investment in Novartis' U.S. operations is expected to approach $50 billion, clearly demonstrating the company’s focus on the United States.

Although medicines are exempt from the latest round of tariffs,Trump's renewed threats around sector-specific tariffs on pharmaceuticals have hit industry stock prices in recent days. Trump has previously said that the drug tariffs could climb to "25% or higher."

As early as February, during an event named "Eli Lilly USA," Eli Lilly announced a plan to invest $27 billion in building four new U.S. production facilities, marking the largest allocation of funds for American manufacturing since 2020.More than twice as much. (Another $3 Billion Investment! Lilly Announces Expansion, GLP-1 Production Capacity Further Increased）

Later, Johnson & Johnson stated that it would invest $55 billion in the United States over the next four years, including the expansion of three new manufacturing bases and other plants in the pharmaceutical giant's drug and medical technology network. Johnson & Johnson's planned investment represents an increase over the previous four-year period.Increased by 25%. ($55 Billion! Johnson & Johnson Announces Major Move!!!）