Novartis CEO Vas Narasimhan emphasized at the World Economic Forum in Davos that the company's $23 billion investment in U.S. facilities provides a robust defense against proposed Trump administration tariffs on European pharmaceutical imports. By expanding domestic production capacity and leveraging existing stockpiles, Novartis ensures that the majority of its U.S. supply chain remains insulated from the imposed levies that start at 10% on February 1 and could escalate to 25% by June.

Under a December accord with U.S. authorities, Novartis has committed to aligning new medicine launch prices in the United States with those in other high-income nations, reinforcing the administration’s efforts to reduce patient out-of-pocket costs. This agreement complements the company’s manufacturing expansion as a dual approach to securing exemptions or mitigation measures for any tariffs that may be implemented.

Building on its defensive posture in the U.S., Novartis projects a compound annual sales growth rate of 5% to 6% on a constant-currency basis from 2025 through 2030. The company attributes this outlook to a strengthened pipeline of key medicines and planned capacity additions in its American operations, which together aim to sustain revenue momentum and operational resilience over the next decade.