Novartis to Expand US-Based R&D and Manufacturing

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Novartis announced on April 10, 2025 the expansion of its manufacturing and R&D presence in the United States with the investment of $23 billion during the next five years. The company will build seven new facilities, bringing production of 100% of its key products to the US. Novartis will also create a new research hub in San Diego to increase R&D activities in the US.

In addition to the seven new facilities, three current sites will be invested in and approximately 1000 new jobs will be created at Novartis with an additional 4000 jobs in the US. Production capacity will be increased for APIs, biologics, and secondary production and packaging.

During the next five years, Novartis will create its second R&D hub in the US, to be located in San Diego; build four new manufacturing facilities, three of which will be dedicated to biologics manufacturing; build two new radioligand therapy (RLT) facilities to be located in Florida and Texas; and expand three of its RLT facilities in Indianapolis, Ind., Millburn, NJ, and Carlsbad, Calif. This investment creates manufacturing capacity of all the company’s core technology platforms in the US, including manufacturing of Novartis’ small interfering RNA (siRNA) technology, allowing for end-to-end production in the US.

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

The new research hub in San Diego, a $1.1 billion investment, will be a state-of-the art research facility with scientific infrastructure and drug discovery capabilities. The facility is planned to open between 2028 and 2029 and will serve as the epicenter of the Novartis West Coast Biomedical Research capabilities. The company has complementing hubs in Cambridge, Mass. and Basel, Switzerland.

In February 2025, Novartis announced another investment: a new viral vector production facility in Mengeš, Slovenia, the first specialized viral vector manufacturing facility in Europe. By investing €40 million (US$43 million) in the facility, the company expanded its research and production capabilities in the biopharmaceutical market (2).

Novartis also announced its potential purchase of Anthos Therapeutics, a Boston clinical-stage biopharmaceutical company, in February 2025. The pending acquisition has an upfront price of $925 million and includes abelacimab, a human monoclonal antibody in late-stage development for the prevention of stroke and systemic embolism in patients with atrial fibrillation (3).

“We are excited to join forces to advance the development of abelacimab, a potential first-in-class treatment and safer approach for stroke prevention in atrial fibrillation as well as cancer-associated thrombosis,” Shreeram Aradhye, MD, president, Development and chief medical officer, Novartis, said in the press release announcing the acquisition (3). “Welcoming Anthos Therapeutics strengthens our focus in the cardiovascular space and complements our portfolio of life-changing treatments, comprehensive clinical programs, and strategic collaborations that help thousands of patients with heart disease around the world.”

References

1. Novartis. Novartis Plans to Expand its US-Based Manufacturing and R&D Footprint with a Total Investment of $23B Over the Next 5 Years. Press Release. April 10, 2025.
2. Novartis. In Slovenia, Novartis Opens Its First Specialized Viral Vector Production Facility in Europe. Press Release. Feb. 5, 2025.
3. Novartis. Novartis Bolsters Late-Stage Cardiovascular Pipeline with Agreement to Acquire Anthos Therapeutics for USD 925 Million Upfront. Press Release. Feb. 11, 2025.