Novartis Reshapes Global Footprint: $23B U.S. Expansion, $159M India Exit

February 19, 2026 · by Fintool Agent

NVS

Novartis is executing a dramatic portfolio reshuffling—exiting India with a $159 million unit sale while simultaneously pouring $23 billion into U.S. manufacturing. The moves signal the Swiss pharma giant's strategic response to the Trump administration's tariff policies and underscore a clear message: the future of Novartis manufacturing is American.

President Trump claimed credit for the shift during remarks at a Georgia steel plant on Thursday, saying Novartis CEO Vas Narasimhan confirmed at a White House meeting that the company is building 11 U.S. plants "as a result of" tariff policies.

The India Exit

Novartis announced Friday it will sell its entire 70.68% stake in its Mumbai-listed subsidiary to a private equity consortium for approximately $159 million (₹14.46 billion).

The buyers—WaveRise Investments, ChrysCapital Fund X, and Two Infinity Partners—have triggered a mandatory open offer to acquire an additional 26% from public shareholders at ₹860.64 per share, a 3.6% premium to Thursday's close. Novartis India shares surged nearly 20% on the news.

The exit comes after a two-year strategic review. Critically, Novartis has no manufacturing presence in India—the unit primarily sells medicines like Voveran (joint pain) through commercial operations. This made India a non-core market despite its classification as an "emerging growth" region.

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The $23 Billion U.S. Bet

Novartis's India sale is pocket change compared to its U.S. ambitions. The company committed $23 billion in April 2025 to build and expand 10+ U.S. facilities through 2030—a direct response to the Trump administration's pharmaceutical tariff threats. 1

The expansion is centered on radioligand therapy (RLT)—a precision cancer treatment that pairs tumor-targeting molecules with therapeutic radioisotopes. RLT doses are individually prepared and time-sensitive, requiring facilities close to treatment centers.

Current U.S. RLT Network:

"Building this new facility in Florida marks an important step in fulfilling the promise of RLT for patients," CEO Narasimhan said in January. "Radioligand therapy has fundamentally changed how we approach certain cancers, and our growing U.S. manufacturing network ensures we can continue to deliver these critical medicines with speed and reliability."

Beyond RLT, Novartis revealed plans for a "flagship" production hub in Durham, North Carolina that will create 700 new jobs. Groundbreakings for manufacturing and research facilities in North Carolina and California have already begun.

Tariffs: The Policy Catalyst

The strategic logic is inseparable from trade policy. In the company's latest 20-F filing, Novartis disclosed it received a three-year tariff relief agreement in December 2025 "in recognition of our plans to expand our U.S. R&D and manufacturing infrastructure." 3

The filing states plainly: "If tariffs or export controls are placed on pharmaceutical products or active pharmaceutical ingredients (APIs) in the U.S. or other parts of the world and we do not receive relief from such tariffs, our supply chain and flow of our products could be disrupted, resulting in a material impact on our business and our financial results." 4

Novartis also highlighted the administration's drug pricing pressure. In December 2025, the company announced a "voluntary agreement" with the Trump administration to lower U.S. medicine costs, including commitments to launch future medicines with comparable prices across high-income countries. 5

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Which other pharma companies announced US manufacturing expansions in response to tariffs?Show me Trump's pharmaceutical executive orders from 2025Compare Novartis's RLT strategy to competitors like AstraZeneca and Bristol Myers

Financial Snapshot

Novartis enters 2026 with solid financials, though recent quarters show some margin compression:

*Values retrieved from S&P Global

Capital expenditures more than doubled from Q1 to Q4 2025, reaching $609 million in the final quarter—a direct reflection of the accelerating U.S. buildout.

The U.S. remains Novartis's most important market, generating 43% of the company's $54.5 billion in 2025 net sales. 1 Europe contributed 31%, while "Asia, Africa, Australasia" represented 20%. Emerging growth markets (everything outside U.S., Canada, Western Europe, Japan, Australia, and New Zealand) accounted for 26% of total sales.

What This Means

Novartis is making a clear strategic choice: prioritize the world's most lucrative pharmaceutical market while shedding non-essential emerging market exposure. The math is stark—$23 billion flowing into the U.S. versus $159 million flowing out of India.

For investors, the moves suggest:

1. Manufacturing closer to demand — U.S.-based production de-risks supply chains and positions Novartis favorably with regulators
2. Policy alignment — The tariff relief agreement and voluntary pricing commitments signal Novartis is playing ball with the Trump administration
3. Emerging market retrenchment — With India gone, questions will arise about other emerging market positions
4. Capex cycle — The $23 billion commitment means elevated capital spending through 2030

What to Watch

• Tariff relief expiration — The three-year agreement expires in late 2028; renewal negotiations will be critical
• Additional facility announcements — The fifth RLT plant (Texas) and other expansions remain pending
• India unit fate — Watch how the consortium integrates the business and whether additional exits follow in other emerging markets
• RLT competitive dynamics — As radiopharmaceuticals gain traction, competitors like AstraZeneca and Bristol Myers Squibb are also building capacity

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Show me Novartis's full pipeline of radioligand therapy candidatesCompare capex spending trends for Novartis, Pfizer, and Eli LillyWhat has Novartis management said about emerging market strategy on recent earnings calls?

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