Novartis Invests $23 Billion to Make Medicines in U.S.
In a bold move signaling its deepening commitment to the U.S. market, Swiss pharmaceutical giant Novartis announced plans to invest $23 billion over the next five years to dramatically expand its American footprint. The investment includes the construction of six new manufacturing facilities, expansion of three existing ones, and the development of a new research and development hub in San Diego.
This ambitious initiative represents a strategic shift for Novartis, which in recent years had scaled back U.S. operations by closing sites in North Carolina, Colorado, Illinois, and even shuttering its former San Diego R&D center — now the location of its newly planned innovation hub.
The company’s expansion comes as geopolitical tensions and trade uncertainty — spurred by former President Donald Trump’s tariff policies — continue to reshape global supply chains. Novartis’ move aligns with broader industry trends, following similar capital investment strategies by rivals Eli Lilly, Merck, and Johnson & Johnson, all under increasing political pressure to localize production.
Localizing for Stability and Growth
At the core of Novartis' strategy is the goal to manufacture all medicines intended for U.S. patients domestically. By reducing dependence on international production and streamlining its supply chain, the company aims to safeguard operations against global trade disruptions while supporting its bullish outlook on U.S. market growth.
“This investment will enable us to fully bring our supply chain and key technology platforms into the U.S. to support our strong U.S. growth outlook,” said CEO Vas Narasimhan. He added that Novartis remains “fully confident in our 2025 guidance, mid- to long-term sales growth outlook and 2027 core margin guidance of 40%+.”
Facilities Spanning the Country
The $23 billion investment will add six new sites to the twelve Novartis already operates in the U.S. Two of the new facilities will focus on radiopharmaceuticals, including manufacturing for cancer drugs such as Pluvicto and Lutathera, with one plant each in Florida and Texas.
The company will also expand its existing operations in Indianapolis, Millburn (New Jersey), and Carlsbad (California). Four additional sites — three focused on biologics and one on chemical drugs and packaging — are still pending site selection.
Importantly, the company plans to bring antisense oligonucleotide drug production to the U.S. for the first time, further diversifying its domestic manufacturing capabilities. These high-complexity drugs, alongside cell and gene therapies already produced in the U.S., reflect Novartis’ pivot toward more advanced and personalized medicines.
A $1.1 Billion Innovation Engine
Among the most notable investments is a $1.1 billion “biomedical research innovation hub” planned for San Diego, which will reopen a key R&D presence for the company in California. Scheduled to open between 2028 and 2029, the site will serve as a critical engine for drug discovery and development in the U.S.
With its current U.S. operations anchored by a subsidiary headquarters in New Jersey and an R&D hub in Cambridge, Massachusetts, Novartis is clearly laying the foundation for long-term commercial and scientific leadership in the American market.
Looking Ahead
As Novartis prepares to release its first-quarter 2025 financial results on April 29, this investment signals confidence not only in its current trajectory but also in the future of pharmaceutical manufacturing in the United States. In a rapidly changing global landscape, the move underscores the strategic importance of proximity, resilience, and innovation — all embedded in the company’s next chapter.
