Dive Brief:

• Pharmaceutical giant Novartis said it will create a flagship manufacturing hub in North Carolina in an effort to produce all of its medicines from start to finish in the United States. Total investment is expected to be $771 million, according to a news release from Gov. Josh Stein.
• The Switzerland-based company’s plans for Durham and Morrisville involve collectively constructing two sites with three new facilities, plus expanding an existing fourth facility in the area, according to the release. 
• The manufacturing hub is scheduled to open as early as 2027. Novartis said the facilities will encompass more than 700,000 square feet and manufacture biologics, sterile packaging, solid dosage tablets and capsules.

Dive Insight:

The North Carolina investment is part of a previously announced pledge from Novartis to spend $23 billion to expand its U.S. manufacturing and research and development footprint over the next five years.

The company is bolstering its U.S. footprint in an effort to better serve one of its key markets amid tariff uncertainty. Approximately 42% of the company’s annual revenue last year came from U.S. sales, according to Novartis’ latest annual report. It has 33 manufacturing sites worldwide, with other key markets in Europe and Asia.

“By building a full, end-to-end manufacturing presence in North Carolina for our broader portfolio, we are expanding our capacity to deliver medical breakthroughs, securing a more resilient US supply chain, and investing in the local communities that make our mission possible,” Novartis CEO Vas Narasimhan said in a statement.

The manufacturing hub will allow teams and production processes to work in tandem “from manufacturing active ingredients to final packaging,” creating operational efficiencies to deliver medicines at scale in the areas of oncology, immunology, neuroscience and more, according to a news release. It is expected to create 700 jobs for the area by 2030.

North Carolina’ Economic Investment Committee awarded a Job Development Investment Grant to the company, based on projected tax revenue and job growth, which could lead to a potential reimbursement of nearly $7.56 million over 12 years. 

In addition to North Carolina’s expansion, Novartis is establishing an R&D hub in San Diego and expanding its existing sites in Carlsbad, California; Millburn, New Jersey; and Indianapolis.

The pharmaceutical giant also has two new sites circled for Florida and Texas to produce radioligand therapies that target cancer cells. The company said it will disclose more details about a new facility focused on xRNA therapies in the coming months.

The U.S. recently agreed to cut its 39% tariffs on imported goods from Switzerland to 15% as part of a framework deal between the two countries and Liechtenstein. Pharmaceuticals are exempt from the tariffs for now.