Novartis plans $37b outlay on US sites amid 'painful' tariff threats
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The news: Swiss drugmaker Novartis is planning to spend USD23 billion ($37 billion) to build and expand 10 facilities in the US, amid threats by the Trump administration to impose new drug import duties, Reuters reported.
The numbers: Novartis, which currently has 33 manufacturing sites globally, said it plans to build six new manufacturing plants over the next five years.
The context: The company said it hasn't decided the location for four of its new manufacturing plants, but two will be built in Florida and Texas.
The announcement comes two days after US President Donald Trump announced plans for a major tariff on pharmaceutical imports.
What they said: "We believe we can manage the tariffs — though of course they will be very painful — so while that is a factor (behind this investment), it's not the driving factor," Novartis CEO Vas Narasimhan said in an interview.
The source: Reuters
