Novartis (NVS, Financial) has announced a strategic plan to invest $23 billion over the next five years to upgrade its operations in the United States. This significant investment aims to ensure that all Novartis medications for the U.S. market will be manufactured domestically.
The initiative will involve the construction of 10 facilities across the country, including the establishment of seven brand-new sites. These developments are expected to generate approximately 1,000 new positions within Novartis, along with around 4,000 additional jobs in the U.S. economy.
Key components of the plan include setting up a biomedical research hub in San Diego, CA, which will serve as Novartis’s second global R&D location in the United States. Further, four new manufacturing sites will be developed in yet-to-be-named states, including three to produce biologics drug substances and one to handle chemical drug substances.
Moreover, Novartis is set to build two radioligand therapy manufacturing plants in Florida and Texas, while expanding three existing sites in Indianapolis, IN, Millburn, NJ, and Carlsbad, CA. Through these efforts, Novartis aims to achieve end-to-end U.S. manufacturing capability for all its primary technology platforms.
This move underscores Novartis’s commitment to enhancing its U.S. manufacturing, particularly in core therapeutic areas such as oncology, immunology, neuroscience, and cardiovascular, renal, and metabolic health. For the first time, the company will bring its siRNA technology production entirely within U.S. borders.
CEO Vas Narasimhan highlighted that the investment aligns with Novartis's growth strategies and the favorable U.S. regulatory environment, which fosters innovation. The company remains optimistic about its future growth projections, maintaining confidence in its 2025 and 2027 financial guidance.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 11 analysts, the average target price for Novartis AG (NVS, Financial) is $109.86 with a high estimate of $125.00 and a low estimate of $95.00. The average target implies an upside of 7.20% from the current price of $102.48. More detailed estimate data can be found on the Novartis AG (NVS) Forecast page.
Based on the consensus recommendation from 10 brokerage firms, Novartis AG's (NVS, Financial) average brokerage recommendation is currently 3.2, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Novartis AG (NVS, Financial) in one year is $111.50, suggesting a upside of 8.8% from the current price of $102.4775. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Novartis AG (NVS) Summary page.
