Novartis Commits 23bn To Us Manufacturing Amid Tariff Threats

Novartis is set to invest23 billion in US-based manufacturing and research and development R D over the next five years, becoming the latest pharmaceutical company to shift operations to the US in response to potential tariffs.

The Swiss drugmaker said it plans to establish a biomedical research hub in San Diego, the second in the country. Novartis will also construct four new manufacturing facilities in yet-to-be-announced states - three focused on biologics and one on chemical drug substances.

Following the firms 1.75 billion acquisition of radiopharmaceuticals company Mariana Oncology and the 745 million deal with Ratio Therapeutics, Novartis is also expanding its radioligand therapy capabilities in the US with new sites in Florida and Texas.

This investment is part of a broader trend among pharmaceutical companies exploring options to reshore operations to the US as President Donald Trump announced wide-ranging tariffs on imported products. Although finished drug products are exempt from the recently announced 10 blanket tariff, Trump said a major tariff on pharmaceutical imports will be announced soon.