Novartis Launches $23 Billion Expansion Plan in US to Counter Tariff Threats

In a bold response to potential import tariffs on pharmaceuticals, Swiss pharmaceutical giant Novartis has unveiled a sweeping $23 billion investment plan to fortify its presence in the United States. The announcement came on April 10, shortly after renewed threats of drug import tariffs emerged from the Trump administration.

The initiative involves constructing and expanding 10 facilities across the US within the next five years, including six new manufacturing plants in San Diego, California. These facilities will handle both active pharmaceutical ingredients (APIs) and biologics, as well as secondary manufacturing and packaging. A state-of-the-art research center in San Diego, backed by $1.1 billion, is slated to open between 2028 and 2029.

The company expects the move to generate over 1,000 high-skilled jobs for scientists and engineers and around 3,000 additional positions for construction workers and support staff. Two manufacturing sites for cancer therapies have already been confirmed in Florida and Texas, with four more locations still under consideration.

Novartis is also expanding its capacity for radioligand therapy (RLT)—a treatment area where it holds a unique commercial portfolio. The plan includes building two new RLT facilities and enhancing three existing ones to meet growing demand.

CEO Vas Narasimhan stated the move is a strategic alignment with U.S. policy and long-term company growth goals, underscoring Novartis’ commitment to adapting swiftly in a volatile global trade environment. He reaffirmed the company’s financial targets through 2027, highlighting confidence in the firm’s resilience and innovation trajectory.

With products like Entresto and Kisqali already being produced at 33 sites globally, this US-centered expansion signals a powerful shift in the global pharma landscape—one driven as much by geopolitics as by science.