Novartis commits $23bn to US manufacturing amid tariff threats

Novartis plans to ascertain an R&D hub in San Diego, the place this workplace is positioned. Credit score: JHVEPhoto by way of Getty Pictures.

Novartis will make investments $23bn in US-based manufacturing and analysis and improvement (R&D) over the subsequent 5 years, changing into the most recent pharmaceutical firm to shift operations to the US in response to potential tariffs.

The Swiss drugmaker stated it plans to ascertain a biomedical analysis hub in San Diego—its second within the nation. Novartis can even assemble 4 new manufacturing amenities in yet-to-be-announced states – three targeted on biologics and one on chemical drug substances.

Following the agency’s $1.75bn acquisition of radiopharmaceuticals firm Mariana Oncology and the $745m deal with Ratio Therapeutics, Novartis can also be increasing its radioligand remedy capabilities within the US with new websites in Florida and Texas.

This funding is a part of a broader pattern amongst pharmaceutical firms exploring choices to reshore operations to the US as President Donald Trump introduced wide-ranging tariffs on imported merchandise. Though completed drug merchandise are exempt from the not too long ago introduced 10% blanket tariff, on 8 April, Trump stated this “main” tariff on pharmaceutical imports will probably be introduced quickly.

The Novartis funding marks the primary main US enlargement by a European pharma firm following the tariff warnings. American-headquartered corporations like Eli Lilly, and Johnson & Johnson (J&J), have already introduced their very own plans to extend US-based manufacturing. Eli Lilly disclosed a $27bn funding in February 2025, whereas J&J stated in March 2025 that it might spend greater than $55m on new amenities.

MSD not too long ago opened a $1bn manufacturing facility in North Carolina to extend manufacturing of its blockbuster HPV vaccine, Gardasil. The corporate described the funding as a part of a broader $12bn dedication to US capital funding since 2018, with one other $8bn anticipated by 2028.

Novartis stated it will likely be capable of “produce 100% of its key medicines end-to-end within the US” following the enlargement. The corporate expects the funding to create round 1,000 direct jobs and an extra 4,000 jobs throughout its provide chain and surrounding communities.

Earlier this week, the European Federation of Pharmaceutical Industries and Associations (EFPIA) referred to as for pressing motion to counter what it described as a “danger of exodus” in R&D and manufacturing. In a gathering with European Fee (EC) President Ursula von der Leyen, the group stated that except the EU quickly reforms its regulatory, mental property, and funding surroundings, drugmakers will more and more shift operations to the US.

Within the 10 April announcement, Novartis’ CEO Vas Narasimhan stated: “These investments additionally replicate the pro-innovation coverage and regulatory surroundings within the US that helps our capability to seek out the subsequent medical breakthroughs for sufferers.”