In a sweeping move that signals its deepening commitment to the American market, Swiss pharmaceutical giant Novartis announced plans to invest $23 billion over the next five years to bolster its U.S. manufacturing and research operations.

The plan, revealed Thursday, includes construction of six new production facilities, expansion of three existing plants, and the creation of a new research and development hub. With this effort, Novartis aims to produce all medications intended for U.S. patients domestically—at a time when global supply chains remain under pressure from ongoing trade policy volatility.

“These investments will enable us to fully bring our supply chain and key technology platforms into the U.S. to support our strong U.S. growth outlook,” said CEO Vas Narasimhan in a statement.

The strategic shift comes amid a broader industry trend. Fellow pharma giants Eli Lilly, Merck & Co., and Johnson & Johnson have also announced new U.S.-based capital investments, following mounting pressure from former President Donald Trump and other policymakers to reshore manufacturing operations.

Novartis’ announcement marks a reversal from recent years, when the company downsized its U.S. presence. Between 2021 and 2024, the company shuttered seven manufacturing facilities and closed an R&D center in San Diego — the same city now selected for its new $1.1 billion “biomedical research innovation hub,” slated to open between 2028 and 2029. Additional closures also hit sites in North Carolina, Colorado, and Illinois.

The new spending plan is expected to significantly raise Novartis’ capital expenditures, which have hovered around $1 billion annually in recent years. The expansion will boost the company’s U.S. footprint from 12 to 18 facilities, complementing its current infrastructure, which includes its U.S. headquarters in New Jersey, an R&D hub in Cambridge, Massachusetts, and manufacturing sites in Indianapolis and Millburn, New Jersey.

Two of the new factories will focus on producing radiopharmaceuticals—namely, the company’s cancer treatments Pluvicto and Lutathera—and will be located in Florida and Texas. Existing plants in Indianapolis, Millburn, and Carlsbad, California will also see expansions.

The four remaining facilities are still being sited. Three are expected to manufacture biologic drug substances, devices, and finished product packaging. The fourth will focus on chemical-based drugs, including pill production and packaging operations.

In addition to scaling its traditional manufacturing capacity, Novartis plans to bring production of antisense oligonucleotide drugs to the U.S. for the first time. The company already produces highly complex treatments like cell and gene therapies at its U.S. sites.

Narasimhan emphasized the company's confidence in its future despite market uncertainties. “We are fully confident in our 2025 guidance, mid- to long-term sales growth outlook and 2027 core margin guidance of 40%+,” he said.

Novartis is scheduled to report its first quarter 2025 financial results on April 29.

Originally reported by Jonadhan Gardner in Construction Dive.