By Yinka Kolawole

Novartis is set to invest $23 billion in US-based manufacturing and research and development (R&D) over the next five years, becoming the latest pharmaceutical company to shift operations to the US in response to potential tariffs.

The Swiss drugmaker said it plans to establish a biomedical research hub in San Diego, the second in the country. Novartis will also construct four new manufacturing facilities in yet-to-be-announced states – three focused on biologics and one on chemical drug substances.

Following the firm’s $1.75 billion acquisition of radiopharmaceuticals company Mariana Oncology and the $745 million deal with Ratio Therapeutics, Novartis is also expanding its radioligand therapy capabilities in the US with new sites in Florida and Texas.

This investment is part of a broader trend among pharmaceutical companies exploring options to reshore operations to the US as President Donald Trump announced wide-ranging tariffs on imported products. Although finished drug products are exempt from the recently announced 10% blanket tariff, Trump said a “major” tariff on pharmaceutical imports will be announced soon. 

The Novartis investment marks the first major US expansion by a European pharma company following the tariff warnings.