East Hanover, N.J. — In a major show of commitment to its largest market, global pharmaceutical giant Novartis announced on Wednesday a sweeping $23 billion investment over the next five years to expand its U.S.-based manufacturing and research infrastructure.
The move is part of a broader strategic push to localize production, boost drug development capabilities, and solidify the company’s presence in the United States. The investment, which will be spread across 10 facilities—including seven entirely new builds—will allow Novartis to manufacture 100% of its key medicines for U.S. patients domestically, a significant leap from current capabilities.
“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,” said Novartis CEO Vas Narasimhan in a statement. “We are prepared for shifts in the external environment and fully confident in our 2025 guidance and long-term growth trajectory.”
A Strategic Bet on U.S. Innovation
Among the centerpiece projects of the investment is a $1.1 billion biomedical research hub planned for the San Diego area. Slated to open between 2028 and 2029, the hub will serve as Novartis’s second U.S. R&D headquarters, complementing its existing site in Cambridge, Massachusetts. The new San Diego facility aims to tap into the region’s vibrant biotech ecosystem and attract top-tier scientific talent, reinforcing the company’s mission to “reimagine medicine.”
The expanded R&D footprint aligns with Novartis’s projected +5% constant currency compound annual growth rate (CAGR) for sales from 2024 to 2029.
Building the Future of U.S. Manufacturing
The $23 billion commitment includes the construction of four new manufacturing facilities in yet-to-be-disclosed states. These will focus on producing both biologics and chemical drug substances, along with device assembly and packaging. Additionally, two new radioligand therapy (RLT) production centers will be built in Florida and Texas, bolstering a pipeline in which Novartis holds a pioneering commercial lead.
Existing RLT manufacturing sites in Millburn, New Jersey; Indianapolis, Indiana; and Carlsbad, California will also be expanded to meet rising demand. The company’s growing portfolio of RLT treatments is part of a wider focus on cutting-edge platforms, which also includes gene therapy, cell therapy, and for the first time, small interfering RNA (siRNA) manufacturing to be based in the U.S.
Economic and Workforce Impacts
The investment is expected to directly create around 1,000 new Novartis jobs and generate an estimated 4,000 additional jobs across the U.S. economy. The economic ripple effects could be substantial, particularly in states selected for new facility construction, which are likely to benefit from long-term employment opportunities and infrastructure development.
The announcement also underlines a broader trend of pharmaceutical companies reshoring production to the U.S. amid growing geopolitical tensions, supply chain disruptions, and policy incentives favoring domestic manufacturing.
U.S. Policy Environment and Long-Term Strategy
Novartis’s announcement praised the “pro-innovation policy and regulatory environment” in the United States, highlighting how recent federal incentives and reforms have made the country increasingly attractive for pharmaceutical research and production.
Over the past two centuries, Novartis has steadily expanded its U.S. presence. By 2030, total investments in U.S. operations are expected to approach $50 billion. Today’s announcement marks one of the largest commitments yet from a foreign-headquartered pharmaceutical firm, positioning Novartis as a key stakeholder in the future of American healthcare innovation.
