By Elsa Ohlen
At least one European pharmaceutical giant seems to have gotten President Donald Trump's message about bringing manufacturing to the U.S.: The maker of top-selling drugs like heart medicine Entresto and Cosentyx for psoriasis, Novartis, just announced it will spend $23 billion to expand its U.S.-based production.
With the new manufacturing capacity, 100% of its key medicines for U.S. patients will be made in the U.S., Novartis said late Thursday.
The company is one of Europe's biggest drugmakers alongside Novo Nordisk, Sanofi, Roche Holding AG, and AstraZeneca. With a market capitalization of almost $200 billion and 2024 sales of over $50 billion, Novartis' pharma footprint is already large.
The Swiss company will now invest billions to pump up production and research & development in the U.S. over the next five years. It will expand current manufacturing as well as creating seven new facilities, creating thousands of American jobs, it said.
Increased R&D includes a new research hub in San Diego "to tap some of the best and brightest minds in America," it added.
The news comes as Trump earlier this week said a major tariff on pharmaceuticals is coming "very shortly." Pharma has so far been exempted from the Trump administration's sweeping tariffs announced on April 2.
Novartis American depositary receipts were up 1.9% to $105.34 in premarket trading Friday. It's Swiss-listed shares rose 1.5% in Europe.
Write to Elsa Ohlen at elsa.ohlen@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
April 11, 2025 08:28 ET (12:28 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.