Novartis Bets Big on US Manufacturing: A Reshoring Trend Takes Hold

NEW YORK, NY – November 19, 2025

Pharma’s Domestic Turn: Novartis Anchors Manufacturing in North Carolina

Novartis is making a significant bet on US manufacturing, announcing a $771 million expansion of its facilities in Durham and Morrisville, North Carolina. This investment, part of a larger $23 billion commitment to US infrastructure, represents more than just a capital expenditure; it’s a strategic realignment signaling a broader trend of pharmaceutical companies bringing production back to domestic soil. The expansion is expected to create 700 new jobs and solidify North Carolina's position as a burgeoning biotech hub.

The company’s decision isn’t happening in a vacuum. Driven by supply chain vulnerabilities exposed during the pandemic and geopolitical considerations, a growing number of pharmaceutical giants are re-evaluating their global manufacturing footprints. “The risks of relying heavily on overseas production became starkly apparent,” noted one industry analyst. “Companies are now prioritizing resilience and control over cost, even if it means higher initial investment.”

A Broader Reshoring Wave

Novartis isn’t alone in this shift. Johnson & Johnson, Merck, and Eli Lilly have all recently announced substantial investments in US manufacturing capabilities. J&J pledged $55 billion over four years, while Merck committed over $70 billion, and Lilly pledged $27 billion in new domestic investment. These commitments aren't just about bringing jobs back; they represent a fundamental shift towards a more localized and resilient supply chain.

“What we’re seeing is a response to multiple pressures – the desire to shorten supply chains, reduce reliance on single sourcing, and benefit from government incentives,” explained another source familiar with the industry. “The recent emphasis on national security and the potential for trade disruptions have also played a role.”

This trend is being further fueled by government initiatives, including tax breaks and grants designed to incentivize domestic manufacturing. However, some observers caution that the effectiveness of these incentives remains a topic of debate, with concerns about projects failing to deliver the promised job creation.

North Carolina’s Biotech Rise

Novartis’ expansion is particularly noteworthy for North Carolina. The state has been steadily emerging as a leading biotech hub, attracting investment and talent. The Research Triangle Park area, encompassing Durham, Raleigh, and Chapel Hill, boasts a robust ecosystem of universities, research institutions, and biotech companies.

“North Carolina offers a compelling combination of factors,” said a local economic development official. “A highly skilled workforce, a supportive regulatory environment, and a relatively low cost of living make it an attractive location for companies in this sector.”

The Novartis investment is expected to further accelerate this growth, creating a ripple effect throughout the region. The company’s expansion will not only create direct jobs but also generate demand for related services and support industries. Furthermore, the company’s commitment to advanced manufacturing technologies will help to attract and retain top talent in the region. The average annual salary of the 700 new positions is projected to be over $111,000, significantly higher than the local average, providing a substantial economic boost to the area.

Investing in the Future of Medicine

Beyond the economic benefits, Novartis’ expansion also highlights the company’s commitment to innovation in advanced therapies. The new facilities will focus on manufacturing a range of cutting-edge treatments, including cell and gene therapies, radioligand therapies, and siRNA-based therapies. These therapies hold the promise of treating previously incurable diseases, such as cancer, genetic disorders, and neurological conditions.

“These are incredibly complex therapies to manufacture,” explained a pharmaceutical manufacturing expert. “They require specialized facilities, highly skilled personnel, and rigorous quality control processes. Novartis is positioning itself at the forefront of this rapidly evolving field.”

The company’s decision to bring the manufacturing of its siRNA technology to the US for the first time underscores its commitment to localizing production of these advanced therapies. This move will not only reduce reliance on foreign suppliers but also provide greater control over the manufacturing process and ensure the quality and safety of these critical treatments. The new facilities will be equipped with state-of-the-art technology and staffed by a team of highly skilled scientists and engineers, ensuring that these therapies are manufactured to the highest standards. The scale of investment demonstrates the seriousness of this commitment, ensuring the availability of these cutting-edge therapies to patients in need.