Pharmaceutical giant Novartis has announced plans to invest $23bn into its US manufacturing and R&D infrastructure during the next five years.
This follows the Trump Administration's decision to place tariffs on pharmaceutical imports, which may impact the price and availability of medicines to the US population — AvaTrade’s Chief Market Analyst, Kate Leaman tells Manufacturing Chemist.
Novartis' US expansion plan will enhance the company's North American presence, with seven brand new facilities accompanying the ten API and biologic production and packaging sites across the country.
By widening its footprint in the US market, Novartis will create 1,000 new jobs, with the expansion including:
- The inauguration of a biomedical research innovation hub in San Diego (the company's second in the US)
- Construction of four new manufacturing facilities: one for the manufacture of oral solid dosage forms and chemical APIs, and three dedicated to the production of biologics, drug products, device assembly and packaging
- Building two radioligand therapy manufacturing facilities in Florida and Texas
- The expansion of three existing radioligand therapy manufacturing facilities in Indianapolis, Millburn and Carlsbad.
This investment will also bring the production of the company's siRNA technology to the US for the first time — expanding the country's oncological, immunological, cardiovascular, renal, metabolic and neuroscience drug manufacturing capacity significantly.
According to Novartis, the expansion will allow the company to produce 100% of its key medicines end-to-end in the US.
"As a Swiss-based company with a significant presence in the US, these investments will enable us to fully bring our supply chain and key technology platforms into the US to support our strong US growth outlook," commented Vas Narasimhan, CEO of Novartis.
"These investments also reflect the pro-innovation policy and regulatory environment in the US that supports our ability to find the next medical breakthroughs for patients. We are prepared for shifts in the external environment and fully confident in our 2025 guidance, mid- to long-term sales growth outlook and 2027 core margin guidance of 40%+."
During the next five years, Novartis estimates that it will spend nearly $50bn on upgrading its US operations, suggesting the company is strongly focused on the key market.