Novartis to invest $23bn into US-based infrastructure over next five years

The commitment will expand the company’s current manufacturing, research and technology presence in the US with ten facilities, including seven new sites.

The investment will go towards establishing a $1.1bn biomedical research innovation hub in San Diego, California, building two new radioligand therapy manufacturing facilities in Florida and Texas, as well as expanding three existing radioligand therapy manufacturing facilities in Indiana, New Jersey and California.

The newly planned San Diego research hub, expected to open between 2028 and 2029, will provide scientific infrastructure and drug discovery capabilities, and will serve as the “epicentre” of Novartis’ West Coast biomedical research presence, the company said.

The funds also cover four new manufacturing facilities in “soon-to-be-determined” states. Three of these will focus on producing biologics drug substances, drug products, device assembly and packaging, while the other will make chemical drug substances, oral solids dosage forms and packaging.

Novartis said it already manufactures its “most innovative, advanced therapies” in the US for patients in the country and globally.

The company said the new investment will provide it with manufacturing capacity for all of its core technology platforms, including small molecules and biologics, and will bring internal manufacturing of its small interfering RNA technology to the country for the first time.

Novartis’ chief executive officer, Vas Narasimhan, said: “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.

The announcement comes just three weeks after Johnson & Johnson said it would be investing more than $55bn into the US over the next four years.

“These investments also reflect the pro-innovation policy and regulatory environment in the US that supports our ability to find the next medical breakthroughs for patients.”

Eli Lilly also unveiled a significant US commitment in February. The company said it would be investing at least $27bn in building four new pharmaceutical manufacturing sites, raising its total US capital expansion commitments to more than $50bn since 2020.