Swiss pharmaceutical company Novartis has unveiled plans to invest $23 billion over the next five years to boost its manufacturing capabilities and research and development (R&D) efforts in the United States. This strategic move comes as drug manufacturers adapt their supply chains in anticipation of potential tariffs imposed by the U.S. government.

Details of the Investment

As part of this investment, Novartis aims to enhance its ability to produce all key drugs locally within the U.S. The company will construct seven new facilities, in addition to expanding existing ones, to support this goal. These facilities will support the production of a diverse range of medications including those for cancer and cardiovascular diseases.

Job Creation and Economic Impact

The investment is expected to generate nearly 1,000 direct jobs at Novartis, alongside an estimated 4,000 additional jobs across the supply chain and in local communities. Furthermore, Novartis intends to invest in the production of active pharmaceutical ingredients domestically, thereby reducing reliance on international suppliers, primarily from China and India.

Focus Areas and Facilities

Among the significant developments is the establishment of a $1.1 billion research and development institute in San Diego, marking Novartis’s second facility in the U.S., following its existing site in the Boston area. The company plans to open new manufacturing plants for radioligand therapy—an advancing treatment option for cancer—across Florida and Texas, while also expanding existing operations in Indiana, New Jersey, and California.

Corporate Confidence and Future Outlook

Vas Narasimhan, Chief Executive Officer of Novartis, commented that this investment reflects the company’s confidence in the U.S. regulatory environment, which he described as “pro-innovation.” He expressed optimism about the company’s ability to deliver medical breakthroughs to patients. Narasimhan further stated that Novartis is “prepared for shifts in the external environment” and remains “fully confident” in its financial guidance, including expectations for a core margin exceeding 40% by the year 2027.

Context of Recent Pharmaceutical Investments

This initiative follows similar commitments from other leading pharmaceutical companies. Recently, Eli Lilly announced a $27 billion plan to enhance its U.S. operations, while Johnson & Johnson revealed its own commitment of over $55 billion for four manufacturing sites. Additionally, AstraZeneca previously declared a $3.5 billion investment aimed at expanding its U.S. manufacturing footprint.