Novartis AG (NVS  ) on Thursday unveiled a sweeping $23 billion investment plan to expand its manufacturing and research infrastructure in the U.S. over the next five years.

The move is part of a broader strategy to ensure that all key Novartis medicines for U.S. patients are produced domestically.

As part of the initiative, Novartis will build seven new facilities - four focused on manufacturing and two dedicated to radioligand therapy (RLT) - and expand three existing RLT production sites.

These efforts are expected to generate nearly 1,000 new jobs at Novartis and support around 4,000 additional roles.

The move comes after U.S. President Donald Trump on Tuesday disclosed plans for a "major tariff" on foreign pharmaceuticals.

On Wednesday, President Donald Trump announced a 90-day pause on tariffs for countries that have not retaliated against U.S. trade measures.

"As a Swiss-based company with a significant presence in the U.S., these investments will enable us to fully bring our supply chain and key technology platforms into the U.S. to support our strong U.S. growth outlook. These investments also reflect the pro-innovation policy and regulatory environment in the U.S. that supports our ability to find the next medical breakthroughs for patients," said Vas Narasimhan, CEO of Novartis. "We are prepared for shifts in the external environment and fully confident in our 2025 guidance, mid- to long-term sales growth outlook, and 2027 core margin guidance of 40%+."

The investment includes a newly planned $1.1 billion research hub in San Diego, a research facility for scientific infrastructure and drug discovery.

The new complex, expected to open between 2028 and 2029, will serve as the epicenter of the Novartis West Coast Biomedical Research presence, complementing existing hubs in Cambridge, Massachusetts, and Basel, Switzerland.

In addition, the company will be expanding RLT manufacturing with new facilities in Florida and Texas.

To support growing demand for RLTs in the U.S., Novartis has expanded production capabilities in Millburn, New Jersey, and a state-of-the-art facility in Indianapolis, Indiana, and is building a third US RLT manufacturing facility in Carlsbad, California.

The total investment in Novartis' U.S. operations is expected to be nearly $50 billion over the next five years.

Earlier this year, Johnson & Johnson (JNJ  ) announced its plans to invest more than $55 billion in the U.S. over the next four years, while Eli Lilly And Co (LLY  ) announced to double its U.S. drug manufacturing spending from $23 billion to $50 billion within five years.

A Wedbush analyst said on Tuesday that building a factory in the U.S. takes four to five years. The analyst explains that high labor costs and other expenses in the U.S. don't align with how modern supply chains are designed to operate.

NVS Price Action: Novartis stock is up 2.33% at $103.40 during the premarket session at publication Friday.