Novartis is Expanding its U.S. Manufacturing and R&D Presence
Over the next five years, Novartis will be investing USD 23 billion in 10 facilities, including seven new facilities.
Novartis is growing its manufacturing and R&D presence in the U.S. over the next five years through an investment totaling USD 23 billion, the company announced in an April 10, 2025 press release (1). The money will be invested into 10 facilities, including seven new facilities, covering both APIs and biologics drug substance, as well as secondary packaging and production.
Through this investment, Novartis will be establishing a biomedical research innovation hub, building 4 new manufacturing facilities and two new radioligand therapy (RLT) facilities, and will be expanding three RLT manufacturing facilities over the next five years. The new research hub will be located in San Diego, Calif. and will be used to provide scientific infrastructure and drug discovery capabilities to Novartis scientists. While the locations of the four new manufacturing facilities are yet to be determined, the new RLT facilities will be located in Florida and Texas. Expansions will be made to the company’s RLT facilities in Indianapolis, Ind., Milburn, N.J., and Carlsbad, Calif.
“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,” said Vas Narasimhan, CEO of Novartis, in the press release (1). “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’ new research hub in San Diego is expected to be open between 2028 and 2029 and will complement the company’s existing hubs in Cambridge, Mass., and Basel, Switzerland. The investment into RLTs will allow Novartis, which is a key player in the sector, to meet the growing demand for these therapies within the U.S. market.
According to market research, RLTs are increasingly finding use in hard-to-treat and advanced cancers, with the sector expected to reach a value of USD 17.09 billion by 2033 (2). On March 28, 2025, Novartis announced that the U.S. FDA had approved an expanded indication of its intravenous RLT, lutetium Lu 177 vipivotide tetraxetan (Pluvicto), tripling the number of patients who will be eligible to receive the therapy (3). With the regulatory approval, Novartis’ RLT can now be used after one androgen receptor pathway inhibitor and prior to chemotherapy in patients with prostate-specific membrane antigen-positive metastatic castration-resistant prostate cancer.
References
Novartis. Novartis Plans to Expand its U.S.-based Manufacturing and R&D Footprint with a Total Investment of $23B Over the Next 5 Years. Press Release, April 10, 2025.
Novartis. FDA Approves Novartis Radioligand Therapy Pluvicto® for Earlier Use Before Chemotherapy in PSMA-Positive Metastatic Castration-Resistant Prostate Cancer. Press Release, March 28, 2025.