Novartis has increased its pharmaceutical inventories in the United States to safeguard against possible tariffs, the company’s CEO Vas Narasimhan said in an interview published on Saturday, reports Reuters.
While US authorities have exempted pharmaceuticals from the 39% tariffs imposed on Switzerland last month, the sector remains under review for potential import duties.
A July US–EU trade deal also allows for a 15% tariff on most drugs, excluding certain generics.
Narasimhan told Swiss newspaper Neue Zuercher Zeitung that the company’s US stockpiles are sufficient to meet demand until mid-2026.
He added that Novartis has committed $23 billion in medium-term investments to expand local production of its key products for the American market.
“It may take three to four years to achieve full local manufacturing, but we expect meaningful progress within two years, including completing some final filling and packaging in the US,” Narasimhan said.
“This approach should fully offset potential tariffs.”
He noted that the Section 232 investigation by Washington could impose tariffs of up to 250%, but the probability remains uncertain.
Novartis is preparing for multiple scenarios, including adjustments to supply chains and local production lines.
Narasimhan stressed that increasing US manufacturing capacity is a complex process requiring time, skilled labor, and regulatory approvals.
“We are closely monitoring developments and will respond strategically to minimize impact on supply and ensure patients have uninterrupted access to medicines,” he said.
The company’s proactive measures reflect a broader strategy to balance global operations while mitigating potential trade risks.
