Swiss pharmaceutical company Novartis announced that it will invest 33 trillion won to build a new factory in the United States. Following this year, when American pharmaceutical companies Eli Lilly and Johnson & Johnson (J&J) announced large-scale investment plans in the U.S., major European pharmaceutical companies are also joining the investment ranks in America.
After U.S. President Trump announced plans to impose tariffs on previously duty-free pharmaceuticals, there are analyses suggesting that global big pharmaceutical companies are shifting their production and research and development (R&D) infrastructure to the United States.
Novartis announced on the 10th (local time) that it will invest $23 billion (approximately 33 trillion won) to establish and expand 10 production facilities in the United States over the next five years.
The company plans to build a new radiopharmaceutical plant in Florida and Texas. It also stated that it would expand existing plants in Indiana, New Jersey, and California.
The new plants are expected to become major production bases for Novartis's blockbuster radiopharmaceuticals Lutathera and Pluvicto. Novartis stated, 'This investment will enable us to fully produce major pharmaceuticals sold in the United States locally,' adding that 'approximately 1,000 new jobs will be created in the United States.'
The R&D hub will also be built in the United States. Novartis mentioned that this investment also includes an investment of $1.1 billion for a new R&D hub being established in San Diego. The R&D hub is slated to open in 2028-2029.
Novartis did not directly mention Trump's tariff policy. However, this announcement is interpreted as being influenced by Trump administration's moves to impose tariffs on imported pharmaceuticals.
In February, President Trump met privately with CEOs of major U.S. pharmaceutical companies, including Eli Lilly, Merck (MSD), and Pfizer, at the White House to discuss tariffs on pharmaceutical imports. It is reported that Trump pressed them to move production facilities to the United States during this meeting.
Subsequently, in February, Eli Lilly announced plans to invest $27 billion (approximately 39 trillion won) to build four production facilities in the United States. Following that, in March, Johnson & Johnson announced plans to invest $55 billion (approximately 79 trillion won) to establish three new production facilities in the United States and expand existing facilities.
In this month's announcement of reciprocal tariffs, pharmaceuticals were excluded. However, Trump noted that he is considering imposing tariffs on pharmaceuticals separately.
Following the announcement of the U.S. tariff policy, there are voices in Europe demanding radical policy changes to ensure that the EU does not fall behind in competition with the United States. There is a warning that without policy changes from the EU, the outflow of investment, R&D, and manufacturing infrastructure to the United States may accelerate.