Novartis' $23 billion investment signals major manufacturing shift amid Trump's ‘MAGA' agenda

New Indian Express

24-04-2025

In what could be seen as a bellwether for the pharmaceutical industry's sweeping shift toward localised manufacturing—spurred by anticipated regulatory changes under the Trump administration's
"Making America Great Again"
agenda—Swiss pharmaceutical giant Novartis AG has positioned itself as a first mover, announcing a landmark investment in US-based production.
The multinational drug maker has unveiled plans to invest $23 billion over the next five years to significantly expand its manufacturing footprint across the United States. As part of this bold initiative, Novartis will construct and expand ten facilities, including seven entirely new sites. The project is expected to generate nearly 1,000 new jobs directly within Novartis and create approximately 4,000 additional jobs across the broader US economy.
In a recent statement on the company's website, Novartis CEO Vas Narasimhan emphasised the strategic importance of this move: 'As a Swiss-based company with a strong presence in the US, these investments will allow us to fully integrate our supply chain and key technology platforms domestically, reinforcing our confidence in our U.S. growth trajectory.'
He added, 'These investments also reflect the pro-innovation policy and regulatory environment in the U.S., which empowers us to discover and deliver the next wave of medical breakthroughs for patients.'
Industry experts interpret this initiative as part of a broader strategic alignment with looming regulatory reforms, not just in pharmaceuticals but across key industries. The US remains the world's largest pharmaceutical market, currently valued at approximately $650 billion and projected to reach nearly $884 billion by 2030. For global pharma players—including major generics manufacturers from India, often dubbed the "pharmacy of the world"—the US represents a critical source of revenue and profitability.
As such, any potential regulatory mandates favoring domestic manufacturing or increasing import tariffs could pose a significant challenge to companies lacking local production capacity, threatening to erode margins and market share. For Novartis, the decision to expand its US footprint is both a defensive and strategic move.
The company's US expansion includes four new manufacturing facilities in as-yet-undisclosed states: three focused on biologics (including drug substances, drug products, device assembly, and packaging) and one dedicated to chemical drug substances and oral solid dosage forms. In addition, Novartis will build two new radioligand therapy (RLT) production sites in Florida and Texas and enhance three existing RLT facilities in Indianapolis, Indiana; Millburn, New Jersey; and Carlsbad, California.
Further reinforcing its innovation pipeline, Novartis will also launch a $1.1 billion biomedical research and innovation hub in San Diego, California, slated to open between 2028 and 2029. The complex will provide cutting-edge scientific infrastructure and drug discovery capabilities to support the company's West Coast research efforts.
Once fully operational, Novartis will have domestic manufacturing capabilities across all its core technology platforms, including small molecules, biologics, and, for the first time, siRNA-based therapeutics. This expanded production network will allow the company to manufacture 100% of its key medicines within the US, significantly boosting its current output levels.
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