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Highlights

  • $23 Billion Investment: Novartis to invest over five years in new facilities and research capabilities in the U.S.

  • Job Creation: Plans include 1,000 new Novartis jobs and 4,000 additional indirect roles nationwide.

  • Domestic Drug Production: Initiative supports full U.S.-based manufacturing of Novartis medicines.

Pharmaceutical giant Novartis (NYSE:NVS) announced on Thursday that it will invest $23 billion over the next five years to significantly expand its U.S. operations, reinforcing its commitment to American drug manufacturing as the industry faces growing uncertainty over potential tariffs.

The sweeping expansion plan includes the establishment of a new research hub in San Diego, the construction of six new manufacturing facilities, and the expansion of three existing plants. The company said the initiative is aimed at bolstering its capacity to produce all of its U.S.-bound medicines domestically.

The move is expected to generate around 1,000 new jobs at Novartis and create roughly 4,000 additional positions across supporting industries in the United States, the company noted in its announcement.

“This investment underscores our commitment to innovation, job creation, and ensuring medicine supply security for U.S. patients,” Novartis stated, emphasizing its plan to localize production amid increasing geopolitical and trade tensions.

The announcement comes at a tense moment for the pharmaceutical sector. While last week’s executive order from the White House exempted medicines from newly proposed tariffs, industry insiders remain on edge. President Donald Trump warned earlier this week that pharmaceutical tariffs are likely to be introduced “very shortly,” fueling speculation that future policy shifts could directly impact global drugmakers.

Adding to the diplomatic undertones, Swiss President Karin Keller-Sutter confirmed on social media platform X that she spoke with President Trump on Wednesday — a conversation believed to have touched on trade and healthcare-related issues, although no official details were released.

As part of its expansion, Novartis revealed that four of the six new manufacturing sites have yet to be assigned locations but will focus on producing biologics, oral drugs, and other key pharmaceutical components. Two additional facilities are slated for Florida and Texas, specifically designed to manufacture next-generation radioligand therapies — targeted cancer treatments that deliver radiation directly to cancer cells, minimizing damage to healthy tissue.

In tandem with the construction of new sites, three of the company’s existing U.S. facilities that already manufacture radioligands will undergo significant expansion to meet growing demand for advanced cancer treatments.