Novartis announces planned $23B investment over five years in U.S.

Novartis (NVS) announced a planned $23B investment over five years in U.S.-based infrastructure, ensuring all key Novartis medicines for U.S. patients will be made in the United States. “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. The production capacity will cover both active pharmaceutical ingredients and biologics drug substance, as well as secondary production and packaging. Over 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 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. Novartis already manufactures its most innovative, advanced therapies in the US for patients in the US and around the world. This includes cutting-edge technology platforms like gene and cell therapy and RLT manufacturing. This new investment will bring internal manufacturing of the company’s siRNA technology to the US for the first time and reflects a commitment to increase US manufacturing across its main therapeutic areas: oncology, immunology, neuroscience, and cardiovascular, renal and metabolic. With new manufacturing capacity, Novartis will be able to produce 100% of its key medicines end-to-end in the US, a significant increase from current levels,” the company stated. Vas Narasimhan, CEO of Novartis, added: “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. 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. 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%+.”