financetom
Business
financetom
/
Business
/
Novartis plans to invest $23 billion in US plants as Trump renews drug tariff threats
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Novartis plans to invest $23 billion in US plants as Trump renews drug tariff threats
Apr 10, 2025 10:54 AM

(Reuters) -Swiss drugmaker Novartis said on Thursday it plans to spend $23 billion to build and expand 10 facilities in the U.S., as it grapples with renewed threats of drug import duties from the Trump administration.

The drugmaker plans to build six new manufacturing plants, some of which will make raw pharmaceutical ingredients, as well as a new research and development site in San Diego, California, the company said.

Novartis makes drugs, including heart failure medicine Entresto and breast cancer therapy Kisqali, across 33 manufacturing sites globally.

The new sites and extensions will be built over the next five years and are expected to create more than 1,000 jobs for skilled workers like engineers and scientists as well as another 3,000 support staff and construction jobs, Novartis said.

The company said it had yet to decide where to build its new manufacturing plants.

The announcement comes two days after President Donald Trump said the U.S. will soon announce a "major" tariff on pharmaceutical imports, sending shares of drugmakers plunging.

"We believe we can manage the tariffs - though of course they will be very painful - so while that is a factor (behind this investment), it's not the driving factor," Novartis Chief Executive Vas Narasimhan said in an interview, adding that it aims to produce the drugs it sells to Americans in the U.S. rather than import them.

The Basel, Switzerland-based drugmaker has previously said it hoped to become a top-five player in the U.S. pharmaceuticals market, the largest in the world, as part of a U.S.-first strategy.

U.S. drugmakers including Eli Lilly ( LLY ) and Johnson & Johnson ( JNJ ) announced their own U.S. manufacturing investments earlier this year, with Lilly committing to spend $27 billion on U.S. plants over five years.

Trump, who campaigned on a promise to boost domestic manufacturing, has been piling pressure on drugmakers since taking office to move medicine production to the U.S.

Industry trade group PhRMA has said it can take 5 to 10 years and $2 billion to bring on a new production facility in the U.S. in part because of regulatory requirements.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Affirm's Focus on Higher-Income Users, Apple Pay Integration to Drive Growth, Morgan Stanley Says
Affirm's Focus on Higher-Income Users, Apple Pay Integration to Drive Growth, Morgan Stanley Says
Oct 10, 2024
10:40 AM EDT, 10/09/2024 (MT Newswires) -- Affirm Holdings ( AFRM ) shows promise in attracting higher-income consumers drawn by better distribution, promotional offers including 0% and low-interest financing options and pricing strategies, Morgan Stanley said in a note on Wednesday. Putting all those tools together can attract higher-income users, where we would expect Affirm to expand its offerings to...
US plan to break up Google's search dominance threatens profit engine, AI growth
US plan to break up Google's search dominance threatens profit engine, AI growth
Oct 10, 2024
(Reuters) - The U.S. Department of Justice's proposed remedies to break up Google's search dominance could weaken its main profit engine and stall its advances in artificial intelligence, even though a final outcome may be years away, analysts said. The DOJ said on Tuesday it may ask a judge to force Google to divest parts of its business such as...
What's Going On With Novavax Stock Today?
What's Going On With Novavax Stock Today?
Oct 10, 2024
Novavax Inc ( NVAX ) on Wednesday announced the receipt of European marketing authorization for its Nuvaxovid COVID-19 vaccine. What Happened: Novavax ( NVAX ) said the European Commission granted Marketing Authorization for its updated 2024-2025 Nuvaxovid COVID-19 vaccine for use in individuals aged 12 and older. NVX-CoV2705 is an updated version of Novavax’s prototype COVID-19 vaccine formulated to target...
US plan to break up Google's search dominance threatens profit engine, AI growth
US plan to break up Google's search dominance threatens profit engine, AI growth
Oct 10, 2024
(Reuters) - The U.S. Department of Justice's proposed remedies to break up Google's search dominance could weaken its main profit engine and stall its advances in artificial intelligence, even though a final outcome may be years away, analysts said. The DOJ said on Tuesday it may ask a judge to force Google to divest parts of its business such as...
Copyright 2023-2025 - www.financetom.com All Rights Reserved