Key Points
- Novartis will invest part of its $23 billion U.S. expansion budget to build a multi-facility manufacturing hub in North Carolina, opening between 2027 and 2028.
- The project is tied to a U.S.–Switzerland trade agreement that reduces tariffs and encourages Swiss companies to invest $200 billion in the U.S. by 2028.
- The expansion will create 700 direct jobs and over 3,000 indirect roles, enhancing domestic production of Novartis’ key U.S. medicines.
Novartis is deepening its footprint in the United States with plans to build a major manufacturing hub in North Carolina, part of a sweeping $23 billion U.S. infrastructure investment that the Swiss pharmaceutical company will deploy over the next five years. The expansion marks one of the firm’s largest U.S. commitments to date and reflects a strategic shift toward domestic manufacturing amid shifting trade, regulatory, and supply-chain dynamics.
A Strategic U.S. Bet Anchored by Trade Incentives
The announcement comes days after the U.S. and Switzerland reached a preliminary trade agreement that will slash American tariffs on Swiss goods to 15% from 39%. In return, Swiss multinationals — including Novartis — pledged to invest $200 billion in the United States by 2028. For Washington, the deal brings high-value advanced manufacturing and jobs. For Novartis, it provides tariff relief and strategic positioning in a market where political pressure to “onshore” critical medicines continues to grow.
By choosing North Carolina, a leading biomanufacturing hub with a strong talent pipeline and existing pharma infrastructure, Novartis is aligning its expansion with the state’s rapidly growing life-sciences ecosystem.
North Carolina Hub to Create Thousands of Direct and Indirect Jobs
The new facilities — two sites in Durham for biologics manufacturing and sterile packaging, and a Morrisville plant for solid-dosage drug production — are expected to open between 2027 and 2028. The company will also expand its existing Durham campus to support additional sterile biologics filling operations.
This investment is projected to create 700 new Novartis jobs and over 3,000 supply-chain and ancillary roles across the region by 2030. In an industry where skilled labor shortages are mounting, the announcement positions North Carolina as an increasingly dominant anchor for U.S. biopharmaceutical production.
Strengthening Domestic Production Capacity
One of Novartis’ stated objectives is ensuring that all key U.S. medicines can be produced domestically. The move reflects a broader trend: pharmaceutical companies are reassessing geographic concentration risks following years of global supply pressure, regulatory uncertainty, and geopolitical fragmentation.
Biologics — complex, high-value therapeutics — are particularly sensitive to supply-chain disruptions. By building a manufacturing hub dedicated to biologics and sterile packaging, Novartis is attempting to increase resilience while preparing for anticipated growth in U.S. demand for advanced therapies.
The strategy also aligns with ongoing policy discussions in Washington aimed at reducing dependence on overseas drug production and enhancing national preparedness for future health emergencies.
A Broader U.S. Pharmaceutical Landscape Shifts
The investment underscores how trade agreements, federal incentives, and competition for biomanufacturing dominance are reshaping the sector. As companies like Eli Lilly, Novo Nordisk, and Amgen also expand U.S. capacity, the industry is entering a new phase defined by large-scale capital commitments, automation, biologics specialization, and regional manufacturing clusters.
For Novartis, the North Carolina hub not only boosts production capacity but also strengthens its long-term commercial presence in the world’s largest pharmaceutical market.
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