Novartis to invest US$23 billion in US facilities amid tariff threats

Swiss pharmaceutical giant Novartis has announced its intention to invest up to US$23 billion in building and expanding ten pharmaceutical facilities in the US as drugmakers scramble to respond to potential drug import and manufacturing tariffs declared by the Trump administration.

Among the facilities to receive this billion-dollar investment are six new manufacturing plants and a new R&D site in California. Over the next 5 years, these facilities are expected to bring in 1000 jobs for skilled workers, engineers, and scientists, and an additional 4000 in support staff and construction opportunities. Decisions are still to be made on where the remaining four plants will be located, but two are confirmed to be built in Florida and Texas for the production of cancer therapies.

Novartis’ announcement came 2 days after US President Trump announced “major” tariffs on the pharmaceutical industry, particularly on imported drugs manufactured outside the US. Chief Executive of Novartis Vas Narasimhan commented, “We believe we can manage the tariffs – though of course they will be very painful – so while that is a factor [behind this investment], it’s not the driving factor.” The total investment from Novartis towards its US pharmaceutical operations are expected to reach up to US$50 billion over the next 5 years.

Other pharmaceutical companies like Merck have also begun investing in US-based drug manufacturing sites. Pfizer’s CEO also recently outlined the potential for the company to move overseas manufacturing back to the US in response to the Trump administration’s tariffs. Such moves are being made in parallel to pharmaceutical lobbies petitioning the government to introduce phased tariffs on the pharmaceutical industry, citing threats to the global supply chain and exacerbating drug shortages of lifesaving medicines.

Source

Novartis plans to invest $23 billion in US sites as Trump renews drug tariff threats [Accessed April 14, 2025] https://www.reuters.com/business/healthcare-pharmaceuticals/novartis-plans-invest-23-billion-us-plants-trump-renews-drug-tariff-threats-2025-04-10/