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Amid renewed threats of import tariffs on pharmaceuticals from the Trump administration, Novartis plans to spend $23 billion over the next five years to expand its manufacturing, research and technology presence in the U.S.

In an April 10 press release announcing the investment, the Swiss drugmaker said the increased capacity will enable the production of 100% of its key medicines end-to-end domestically.

Novartis said it will build seven new facilities, including a $1.1 billion biomedical research innovation hub in San Diego. After its expected opening between 2028 and 2029, the complex will complement Novartis’ existing research outposts in Massachusetts and Switzerland. The pharma has its U.S. headquarters in East Hanover.

The company will build four new manufacturing sites in soon-to-be-determined states. The projects will include three sites to make biologics drug substances, drug products, device assembly and packaging, and one that will produce chemical drug substances, oral solids dosage forms and packaging, the company said.

Additionally, Novartis said it will construct two radioligand therapy (RLT) manufacturing facilities in Florida and Texas.

Novartis said it will also expand existing radioligand facilities in Millburn, Indianapolis and Carlsbad, Calif.

Over the next five years, the company’s total investment in U.S. operations is slated to reach nearly $50 billion. Novartis expects to create more than 1,000 new positions for skilled workers, like scientists and engineers, and an additional 4,000 jobs for support staff and construction overall.

An emerging trend

Novartis said the bolstered U.S. footprint will result in a “significant increase” from its current levels of manufacturing. However, the company did not provide further details on how much it produces here. Reuters noted that presently the company manufactures its drugs across 33 sites globally.

In a statement, Novartis CEO Vas Narasimhan, said, “As a Swiss-based company with a significant presence in the U.S., these investments will enable us to fully bring our supply chain and key technology platforms into the U.S. to support our strong U.S. growth outlook. These investments also reflect the pro-innovation policy and regulatory environment in the U.S. that supports our ability to find the next medical breakthroughs for patients. 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 of 40%+.”

Novartis joins a growing number of New Jersey pharma giants that recently announced U.S. manufacturing investments. In March, New Brunswick-based Johnson & Johnson promised to spend more than $55 billion over the next four years. Meanwhile, Rahway-headquartered Merck & Co. pledged $8 billion domestically by 2028.

Eli Lilly & Co., which has its base in Indianapolis, expects to put $27 billion into four U.S. plants within the next five years.

Though President Donald Trump’s sweeping tariff announcement earlier this month excluded the industry, he has repeatedly threatened sector-specific duties and cited drugmakers’ reliance on production sites around the world to supply the U.S. market.