Novartis announced plans to invest $23 billion over the next five years to significantly expand its manufacturing and research capabilities across the United States. The Swiss pharmaceutical giant's investment will establish seven new facilities and expand three existing ones, enabling the company to produce 100% of its key medicines end-to-end within the US—a substantial increase from current levels.
The ambitious expansion comes at a time of increasing pressure for pharmaceutical companies to localize production amid global trade uncertainties and will create nearly 1,000 new direct jobs at Novartis, plus approximately 4,000 additional US jobs through related economic activity.
Manufacturing Expansion Details
Novartis will build four new manufacturing facilities in yet-to-be-determined states. Three of these will focus on biologics drug substances, drug products, device assembly, and packaging, while one facility will produce chemical drug substances, oral solid dosage forms, and handle packaging operations.
Additionally, the company will construct two new radioligand therapy (RLT) manufacturing facilities in Florida and Texas, while expanding three existing RLT manufacturing sites in Indianapolis, Indiana; Millburn, New Jersey; and Carlsbad, California.
"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 of Novartis. "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."
With this expansion, Novartis will have US-based manufacturing capacity across all its core technology platforms, including small molecules and biologics. The investment will also bring internal manufacturing of the company's siRNA technology to the US for the first time.
New Research Hub in San Diego
A significant portion of the investment—$1.1 billion—will establish a state-of-the-art research hub in San Diego, California. Expected to open between 2028 and 2029, this facility will serve as the epicenter of Novartis' West Coast biomedical research presence, complementing existing hubs in Cambridge, Massachusetts, and Basel, Switzerland.
The San Diego research hub represents a notable reversal for Novartis, which had previously closed an R&D center in the same city. The new complex will provide world-class scientific infrastructure and drug discovery capabilities to enhance the company's efforts in reimagining medicine.
Strategic Timing Amid Trade Uncertainties
Novartis' announcement follows similar US manufacturing commitments from pharmaceutical competitors including Eli Lilly, Merck & Co., and Johnson & Johnson, as President Trump's tariff policies have created uncertainty in global trading plans.
The investment appears to reverse some of Novartis' recent pullback from the US market, which included the closure of seven manufacturing sites between 2021 and 2024, as well as shutdowns in North Carolina, Colorado, and Illinois.
Despite the substantial capital expenditure—significantly higher than the company's typical annual spending of around $1 billion—Novartis executives remain confident in their financial outlook. The company maintains its 2025 guidance, mid- to long-term sales growth outlook of +5% CAGR through 2029, and 2027 core margin guidance of 40%+.
Radioligand Therapy Manufacturing Expansion
Novartis is doubling down on its leadership in radioligand therapies (RLTs), an innovative approach to treating certain cancers. As the only organization with a dedicated commercial RLT portfolio, Novartis is expanding its specialized manufacturing capabilities to meet growing demand in the US market.
The company's RLT products, including cancer treatments Pluvicto and Lutathera, require highly specialized production facilities. The planned expansion will strengthen Novartis' ability to deliver these complex therapies to patients across the United States.
Long-term US Commitment
The US remains a priority market for Novartis, with the company's total investment in US operations expected to reach nearly $50 billion over the next five years. This commitment demonstrates Novartis' focus on the US market despite its Swiss headquarters.
"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%+," Narasimhan added.
The company is scheduled to release its first quarter 2025 financial results on April 29, which may provide additional details on the implementation timeline for these expansions.
