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

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April 11, 2025 08:28 ET (12:28 GMT)

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