Novartis pledges $30.5 billion US investment as pharmaceutical tariffs loom
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Novartis says its spending on US operations over the next five years is expected to be nearly US$50 billion, a “clear demonstration” of its focus on America.
PHOTO: REUTERS
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NEW YORK – Swiss pharmaceutical giant Novartis said it will invest US$23 billion (S$30.5 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, comprising a research outpost in California and six manufacturing sites across the country, Novartis said in a statement on April 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,” Novartis chief executive Vas Narasimhan said in the statement.
Novartis joins a growing number of multinational drug companies that have announced investments in the US in 2025.
Eli Lilly said in February it will spend at least US$27 billion on four US plants within the next five years. In March, Merck promised to invest US$8 billion domestically by 2028, while Johnson & Johnson pledged more than US$55 billion over the next four years.
Meanwhile, Mr Trump has repeatedly said he intends to impose tariffs on pharmaceuticals since been put on a 90-day pause
In 2024, Novartis announced the construction of two new US manufacturing facilities for radioligand therapies for cancer, according to a company report.
It broke ground on a facility in Indianapolis and said it is establishing another manufacturing site in Carlsbad, California. BLOOMBERG
