(TJV NEWS) In a bold move to expand its U.S. presence, Swiss pharmaceutical giant Novartis has announced a massive $23 billion investment to build and enhance ten manufacturing facilities across the country over the next five years, Fierce Pharma reported. This strategic initiative aligns with a wave of domestic investment from major drugmakers like Eli Lilly and Johnson & Johnson, as the industry braces for potential import tariffs under a second Trump administration.

The plan includes constructing four new manufacturing plants in yet-to-be-disclosed states, as well as new radioligand therapy facilities in Florida and Texas. Novartis will also expand existing radioligand sites in Indiana, New Jersey, and California. The new and upgraded facilities will focus on producing a wide array of products, including biologic and chemical drug substances, oral solid medications, and devices. Packaging and assembly capabilities will also be included, allowing Novartis to manufacture its key treatments for U.S. patients entirely on American soil.

Fierce Pharma reported that the facilities are expected to support Novartis’ pipeline of oncology, immunology, neuroscience, and radiopharmaceutical products, including commercial therapies such as Pluvicto and Lutathera. In a significant milestone, the company also plans to bring small interfering RNA (siRNA) drug production to the U.S. for the first time.

In addition to manufacturing, Novartis is committing $1.1 billion toward a new research and development hub in San Diego. Slated to open by 2029, the site will serve as the West Coast epicenter of the company’s innovation efforts.

The timing of Novartis’ announcement comes shortly after former President Donald Trump rolled out his “Liberation Day” tariffs, which include base 10% duties on most imports and stiff reciprocal penalties for countries with high trade deficits. Although pharmaceuticals were initially exempt, Trump has warned that tariffs on imported drugs could soar to 25% or more—prompting stock dips and investment concerns across the sector.

While Novartis CEO Vas Narasimhan did not directly comment on Trump’s tariff policies, he emphasized the company’s long-term vision and praised the U.S. for its “pro-innovation policy and regulatory environment.”

“We are prepared for shifts in the external environment and fully confident in our 2025 guidance, mid- to long-term sales growth outlook and 2027 core margin guidance,” Narasimhan stated.

The $23 billion push is expected to create at least 1,000 new jobs, bolstering the company’s already robust U.S. operations, which currently support production for both domestic and international markets