Novartis adjusts manufacturing strategy in Switzerland to secure competitiveness

To maintain competitive production in Switzerland, Novartis is restructuring its workforce, as well as investing in innovative technologies such as automation, according to the firm’s President of Operations, Steffen Lang.

The changes involve cutting 550 jobs at its Stein site by 2027, while boosting employee numbers at its Schweizerhalle site by 80 by 2028.

The latter site will benefit from an investment of $80 million to focus on expanding innovative siRNA production, a key component of Novartis’ therapeutic strategy in the areas of cardiovascular, renal, and metabolic diseases.

However, Novartis’ Stein site will see the discontinuation of manufacturing activities including production of solid oral dosage forms (tablets and capsules) and sterile medicinal product packaging.

This move does not include its commercial production of personalised cell therapies. Nor does it involve the firm’s sterile dosage form operations, of which it plans to enhance with a $26 million investment as part of the planned changes.

In total, Novartis’ investment in the Swiss production sites exceeds $100 million.

As one of the latest pharma companies to invest in onshoring of medicine manufacturing in the US, last week Novartis revealed it is expanding its footprint in North Carolina, as part of a five-year, $23 billion commitment to increase its manufacturing presence in the country.

Building two new sites and expanding an existing facility will create a “flagship hub” in the region featuring end-to-end capabilities.

This news follows Novartis opening its third manufacturing facility for radioligand therapies earlier this month. This latest plant is in California and the company has existing facilities in Florida and Texas.

AstraZeneca is committing $2 billion in biomanufacturing in Maryland, while Moderna announced last week it is investing over $140 million to onshore its mRNA medicine manufacturing in US.