Pharmaceuticals Novartis announces billion-euro investments in the USA
The pharmaceutical company Novartis plans to invest a total of 23 billion dollars in the USA over the next five years to expand production and research. This is likely a response to the US government's tariff threats under Donald Trump.
11.04.2025, 09:02
SDA
With the new facilities, Novartis will be able to produce 100 percent of the key medicines sold in the USA entirely in the USA, the pharmaceutical company announced in the USA on Friday night. This represents a significant improvement on the current situation and will also contribute to meeting the Group's sales targets.
Seven new plants
Novartis will now expand production and research at 10 sites in the USA in the coming years, with the Group planning to build a total of seven new production facilities. According to the press release, this will create 1000 new jobs at Novartis and a total of 4000 additional jobs in the USA.
Specifically, Novartis announced the construction of a research and innovation hub for biomedicine in San Diego, California, at a cost of 1.1 billion dollars. It is scheduled to open between 2028 and 2029 and will complement the existing hubs in Cambridge, Massachusetts, and Basel.
Biological and chemical active ingredients
It has not yet been decided in which states the four new production facilities will be built. Novartis plans to manufacture biological active ingredients and medicines as well as devices and packaging at three of these facilities. One new facility will specialize in chemical active ingredients, oral dosage forms and packaging.
Novartis also plans to expand the production of radioligand therapies with the construction of new facilities in Florida and Texas. To meet growing demand, the Group has already expanded production capacity in Milburn, New Jersey and Indianapolis, Indiana and is building another facility in Carlsbad, California.
Innovation-friendly environment
The investments reflect the "innovation-friendly political and regulatory environment in the US", Novartis CEO Vas Narasimhan is quoted as saying in the press release. Novartis is prepared for changes in the external environment. Accordingly, he also confirms the forecasts for 2025, for medium to long-term sales growth and the forecast of a core margin of more than 40 percent for 2027.
The press release does not mention the tariff policy of Donald Trump's US government. To date, pharmaceutical imports have been exempt from the newly announced import tariffs in the USA. However, Trump has stated in recent days that the pharmaceutical industry must also prepare for import duties.
