Trump has repeatedly said he intends to impose tariffs on pharmaceuticals, citing the industry’s reliance on manufacturing sites around the world to supply the US market
[NEW YORK] Swiss pharmaceutical giant Novartis said it would invest US$23 billion in the US over the next five years to ensure its key drugs for Americans are made in the country, news that comes as US President Donald Trump has promised to impose tariffs on global drugmakers.
The investment will fund seven new facilities, including a research outpost in California and six manufacturing sites across the country, Novartis said in a statement on Thursday (Apr 10). The firm will also expand three existing US facilities, part of an effort that will create 1,000 jobs at the company.
Spending on US operations over the next five years is expected to be nearly US$50 billion, the company said, a “clear demonstration” of its focus on America. The statement did not disclose how much Novartis previously planned to spend in the US.
“These investments will enable us to fully bring our supply chain and key technology platforms into the US,” chief executive officer Vas Narasimhan said.
Novartis joins a growing number of multinational drug companies to announce investments in the US this year. Eli Lilly & Co said in February it would spend at least US$27 billion on four US plants within the next five years. In March, Merck & Co promised to invest US$8 billion domestically by 2028, while Johnson & Johnson pledged more than US$55 billion over the next four years.
Meanwhile, Trump has repeatedly said he intends to impose tariffs on pharmaceuticals, citing the industry’s reliance on manufacturing sites around the world to supply the US market. The drug industry was excluded from Trump’s sweeping tariff announcement earlier this month, including some levies that have since been put on a 90-day pause.
In 2024, Novartis announced construction of two new US manufacturing facilities for radioligand therapies for cancer, according to a company report. The Swiss drugmaker broke ground on a facility in Indianapolis and said it was establishing another manufacturing site in Carlsbad, California. BLOOMBERG
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