Swiss pharmaceutical company Novartis will build seven new facilities in the United States, as well as expand others, in a $23 billion investment over five years.
This development comes after President Trump’s announcing the implementation of tariffs on imported drugs.
Novartis announced the investment in a press release.
“This commitment enables Novartis to expand on its current manufacturing, research and technology presence across the country with 10 facilities, including 7 brand new facilities, creating nearly 1,000 new jobs at Novartis and approximately 4,000 additional US jobs,” it stated.
According to the release, “[O]ver the next 5 years, Novartis will:
- Establish 1 biomedical research innovation hub in San Diego, CA, its second global R&D hub in the US
- Build 4 new manufacturing facilities in soon-to-be-determined states, including 3 that will make biologics drug substances, drug products, device assembly and packaging, and 1 facility that will make chemical drug substances, oral solids dosage forms and packaging
- Build 2 new radioligand therapy (RLT) manufacturing facilities in Florida and Texas
- Expand 3 RLT manufacturing facilities in Indianapolis, IN, Millburn, NJ, and Carlsbad, CA
“With these investments, Novartis will have manufacturing capacity in the US for all its core technology platforms, including small molecules and biologics,” the release continued.
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The goal for the company is to ensure that “all key Novartis medicines for US patients will be made in the United States.”
Trump promised Tuesday to place tariffs on drugs produced in other countries.
“So we’re going to be announcing, very shortly, a major tariff on pharmaceuticals. And…when they hear that, they will leave China, they will leave other places, because… most of their product is sold here. And they’re going to be opening up their plants all over the place in our country,” Trump said Tuesday night at a National Republican Congressional Committee (NRCC) dinner.
Trump told reporters Wednesday that “[W]e realized during COVID that we don’t make our drugs or our pharmaceuticals in this country.”
However, Novartis CEO Vas Narasimhan stated that “[W]e 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.”
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