Novartis to invest $23 billion in the US over five years

The US market is the number one market for pharmaceuticals in terms of volume, and non-US companies cannot afford to lose the revenues generated in the country. The duties have not yet arrived, but there are already those who are taking action. This is the case of Novartis, which has announced investments of $23 billion to build and expand 10 plants in the United States over the next five years. In detail, the Swiss group intends to build four new production facilities, as well as to establish new radioligand plants in Florida and Texas. The company will also expand production facilities for radioligands (used to diagnose and treat cancer) in Indiana, New Jersey and California.

On the Zurio market, Novartis shares advanced 1.6 per cent following the announcement on Friday, 11 April.

The new sites of the pharmaceutical company's production network will focus on the production of biologic pharmaceuticals, final pharmaceuticals, chemicals and oral solids. The facilities will also be equipped to handle the tasks of device assembly and packaging.

At the end of the investment period, Novartis expects that the additional capacity will allow the group to produce all its key drugs for US patients entirely in the US.

Novartis already produces many key drugs in the US - including cell and gene therapies and radiopharmaceuticals - both for domestic patients and for other countries. With the new investment, the group will also have the opportunity to move its production of RNA (siRNA) into the country for the first time and at the same time strengthen existing production in areas such as oncology, immunology and neuroscience. Novartis' new commitment also includes a $1.1 billion investment in a new research and development hub in San Diego, which will serve as the 'epicentre' of the group's West Coast presence once the facility opens in 2028 or 2029. Overall, the commitment is expected to create 1,000 new jobs.