Novartis invests billions in a new North Carolina hub creating 700 jobs and securing the U.S. medicine supply chain. Learn how this move tackles tariff risks and speeds up drug delivery.
In a strategic move to fortify its operations in a critical market global pharmaceutical giant Novartis is moving forward with a major expansion of its manufacturing hub in North Carolina. This investment is a key part of the company’s previously announced, massive $23 billion pledge to grow its U.S. manufacturing and research footprint over the next five years.
The decision to bolster its U.S. presence comes as the company navigates global tariff uncertainties. The United States is Novartis’s single largest market accounting for a substantial 42% of its annual revenue last year.
Building an End-to-End American Hub
The North Carolina expansion is designed to create a fully integrated manufacturing ecosystem. This means that the entire process of making a medicine—from producing the active pharmaceutical ingredients to the final packaging—will be consolidated at one site.
Novartis CEO Vas Narasimhan explained the rationale stating the move will expand their capacity to “deliver medical breakthroughs” and secure “a more resilient US supply chain.” This integrated approach is expected to create significant operational efficiencies, allowing the company to produce life-saving medicines at scale for areas like oncology, immunology, and neuroscience.
The project is a significant boon for the local economy expected to create 700 new jobs by 2030. In recognition of this North Carolina’s Economic Investment Committee has awarded Novartis a Job Development Investment Grant which could lead to a potential reimbursement of nearly $7.56 million over 12 years based on the company meeting its job creation and investment targets.
A Nationwide U.S. Expansion Strategy
The North Carolina hub is just one piece of Novartis’s broader U.S. growth strategy. The company is also:
- Establishing a new R&D hub in San Diego.
- Expanding its existing sites in Carlsbad, California; Millburn, New Jersey; and Indianapolis.
- Planning new facilities in Florida and Texas focused on advanced radioligand therapies for cancer.
- Preparing to announce details on a new facility dedicated to cutting-edge xRNA therapies.
This expansive build-out underscores a industry-wide shift towards strengthening domestic supply chains for essential goods like pharmaceuticals. The recent framework deal between the U.S. and Switzerland to reduce tariffs also provides a more stable trade environment though pharmaceuticals are currently exempt from these duties.
By investing billions into a seamless U.S. manufacturing network Novartis is not just securing its own supply chain; it is also helping to ensure that American patients have reliable access to the next generation of medical treatments.
