Novartis commits USD480M to scale China operations amid multinational investment surge

CHINA—Novartis is investing more than 3.3 billion Chinese yuan (USD480 million) into its operations in China, reinforcing its long-term bet on the world’s second-largest pharmaceutical market.

The Swiss drugmaker will direct the funds toward upgrading its manufacturing plant in Beijing and expanding its R&D campus in Shanghai, where it also houses its Chinese headquarters.

Of the total, 1.5 billion yuan (USD218 million) will go toward the Beijing facility, funding new factory buildings, updated production equipment, and technologies for aseptic preparation, liquid filling, and packaging.

The Beijing plant, established by Novartis in 1987, currently produces up to 3 billion tablets or capsules and 550 million boxes of packaging annually, positioning it as a key node in the company’s global supply chain.

Deepening research roots in Shanghai

The remaining 1.8 billion yuan (USD262 million) will fund a second phase of development at its Shanghai campus, which serves as its third-largest R&D center globally and the hub of its Asia-Pacific operations.

Beyond internal research, Novartis plans to explore collaboration with local biopharmaceutical partners, including support for phase 1 and 2 clinical trials, to strengthen its pipeline.

“China is crucial to Novartis’ long-term development and innovation,” CEO Vas Narasimhan said at the 2026 China Development Forum, around which the company timed its announcement.

The company, which has maintained operations in China for 140 years, now serves more than 80 million patients in the country.

Radiopharmaceuticals take center stage

Novartis also spotlighted its growing radiopharmaceutical ambitions in China.

It has two approved radioligand therapies in the market—Lutathera and Pluvicto—with Pluvicto receiving approval in two indications in November.

The company recently completed construction of its first Chinese radioligand manufacturing site in Haiyan, Zhejiang province, which will supply treatments for multiple cancer indications once fully operational.

Novartis is also calling on Chinese regulators to develop stronger frameworks for nuclear medicine production and to improve hospital access to these therapies, enabling them to reach more cancer patients.

A wave of big pharma investment

Novartis’ move follows a broader wave of multinational investment in China.

AstraZeneca last week announced a commercial cell therapy manufacturing base in Shanghai as part of a sweeping USD15 billion pledge to China made earlier in 2026.

Eli Lilly, meanwhile, outlined a USD3 billion manufacturing expansion in early March, focused on building local production capacity for its next-generation GLP-1 pill, orforglipron, with Beijing-based CDMO Pharmaron among its initial local partners.