Novartis to Invest $23 Billion in US Manufacturing and R&D Over Five Years

Image Credit: Adobe Stock Images/Olivier Le Moal

Novartis has announced a $23 billion investment over five years to expand US-based manufacturing and R&D, aiming to produce 100% of its key medicines domestically for American patients. The investment involves plans to develop 10 facilities—including seven new sites—with expectations of creating nearly 1,000 new jobs at Novartis and approximately 4,000 additional roles across the United States.¹

"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,” said Vas Narasimhan, CEO, Novartis, in a press release. “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%+."

The expansion will include a $1.1 billion biomedical research hub in San Diego, three new biologics manufacturing sites, one new site for chemical drug substances, two new radioligand therapy (RLT) manufacturing sites in Florida and Texas, and the expansion of three existing RLT locations. The research hub is expected to open between 2028 and 2029.¹

With ongoing pledges from President Donald Trump to impose tariffs on pharmaceuticals and bring more drug manufacturing back to the United States, the Novartis announcement follows similar moves from Eli Lilly and Johnson & Johnson (J&J).

In February, Lilly announced it would double efforts to expand production capabilities in the United States. Over the past five years, the company has invested more than $50 billion in the US market.2 The latest investment includes four new pharmaceutical manufacturing sites and is expected to create over 3,000 jobs for engineers, scientists, operations personnel, and lab technicians.³

In March, J&J announced plans to invest over $55 million in US manufacturing, representing a 25% increase from previous levels. The investment will support three new facilities, expansion of existing sites, and R&D across oncology, neuroscience, immunology, cardiovascular disease, and robotic surgery. The investment, which includes a 500,000-square-foot biologics facility in Wilson, North Carolina, is expected to create 5,000 new jobs and contribute roughly $3 billion to the state’s economy within its first decade.⁴

Amid the flurry of announcements, the European Federation of Pharmaceutical Industries and Associations penned a letter to European Union (EU) President Ursula von der Leyen, warning that unless the EU implements significant policy changes, manufacturing trends will continue to be favorable to the United States.^5,6

Earlier this week, President Trump announced that tariffs on pharmaceuticals should be expected “very shortly.”⁵

“We’re going to tariff our pharmaceuticals, and once we do that, they are going to come rushing back into our country, because we’re the big market," said Trump. "The advantage we have over everybody is that we’re the big market. So, we’re going to be announcing very shortly a major tariff on pharmaceuticals, and when they hear that, they will leave China, they will leave other places, because most of their product is sold here and they’re going to be opening up their plants all over our country.”⁵

References

1. Novartis plans to expand its US-based manufacturing and R&D footprint with a total investment of $23B over the next 5 years. Novartis. April 10, 2025. Accessed April 11, 2025. https://www.novartis.com/us-en/news/media-releases/novartis-plans-expand-its-us-based-manufacturing-and-rd-footprint-total-investment-23b-over-next-5-years

2. Eli Lilly Announces Four New Domestic Production Sites. PharmExec. March 3, 2025. Accessed April 11, 2025. https://www.pharmexec.com/view/eli-lilly-four-new-domestic-production-sites

3. Lilly plans to more than double U.S. manufacturing investment since 2020 exceeding $50 billion. Lilly. February 26, 2025. Accessed April 11, 2025.

4. Johnson & Johnson to Invest Over $55 Billion in US Manufacturing Facilities. PharmExec. March 21, 2025. Accessed April 11, 2025. https://www.pharmexec.com/view/johnson-johnson-invest-over-55-billion-us-manufacturing-facilities

5. Trump: 'Major Tariff' on Pharmaceuticals Coming Soon. PharmExec. April 8, 2025. Accessed April 11, 2025. https://www.pharmexec.com/view/trump-major-tariff-on-pharmaceuticals-coming-soon

6. Pharma CEOs alert President von der Leyen to risk of exodus to the US. EFPIA. April 8, 2025. Accessed April 11, 2025. https://www.efpia.eu/news-events/the-efpia-view/statements-press-releases/pharma-ceos-alert-president-von-der-leyen-to-risk-of-exodus-to-the-us/