Novartis to invest $23B in manufacturing so ‘all key medicines’ can be made in the US

Title

Novartis' $23B U.S. Manufacturing Investment to Ensure 100% Domestic Production of Key Medicines

Keywords

Novartis
$23 billion investment
U.S. pharmaceutical manufacturing
Key medicines production
Radioligand therapy
Research and development (R&D)
Tariff impact
San Diego research hub
U.S. jobs creation
Biologics production

Key Facts

- Investment Overview:
Novartis will invest $23 billion over the next five years to bolster its U.S.-based infrastructure, aimed at producing 100% of its key medicines domestically2 5.

- Facilities Expansion:
The plan includes building 10 facilities, with 7 brand-new sites. These will handle manufacturing of biologics, chemical drug substances, radioligand therapy (RLT), oral solids, and device assembly. Two RLT plants will be located in Florida and Texas1 2 8.

- San Diego R&D Hub:
A new $1.1 billion research and development hub in San Diego is set to open by 2028-2029, serving as the company's West Coast research center1 2 5.

- Job Creation:
The initiative is expected to directly create 1,000 jobs within Novartis and 4,000 additional jobs across the U.S.2 5 7.

- Strategic Goals:
This investment aligns with Novartis' aim to strengthen its U.S. growth outlook, capitalizing on a favorable U.S. policy and regulatory environment while de-risking supply chains amid global trade uncertainties1 2 5.

- Therapeutic Areas:
The expansion will support Novartis' core technologies, including small molecules, biologics, cell and gene therapies, and siRNA production, with a focus on oncology, neuroscience, and cardiovascular treatments2 4 5.

- Tariff Influence:
While Novartis denied that U.S. tariff policies were the primary driver, the announcement follows political developments that strongly incentivize domestic pharmaceutical manufacturing1 3 10.

- Comparative Investments:
Novartis joins competitors like Eli Lilly and Johnson & Johnson, who recently announced similar large-scale U.S. investments in response to changing trade dynamics3 5 7.