Novartis Invests $23 Billion in US to Counter Trump Tariffs, Eyes Growth

• Novartis commits $23 billion to build nine new manufacturing facilities in the US, aiming to neutralize potential Trump administration tariffs and reshoring risks.
• The company has expanded warehousing and increased inventories in the US, with MFN agreements providing tariff exclusions for three years if investment commitments are met.
• New US facilities will heavily utilize automation and AI to mitigate rising costs associated with reshoring, adding only about 1,000 direct roles.
• Despite the largest patent expiry in its history (Entresto), Novartis expects continued sales growth, projecting 5-6% growth over the next five years.
• Novartis plans consistent deal-making, including a $12 billion RNAi acquisition, to fuel innovation and maintain growth towards $70-80 billion in revenue.

Why It Matters: Novartis strategically invests $23 billion in US manufacturing to mitigate tariff risks and drive future growth.