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Novartis investing $23 billion in U.S. manufacturing sites

April 11, 2025
Biotech Correspondent

Happy Friday! Today, we react (and so does BIO CEO John Crowley) to health secretary RFK Jr.'s newest vaccine claims, see Novartis investing big in U.S. manufacturing, and more.

By the way, a little media update: STAT just won a National Magazine Award for General Excellence. Thanks for reading.

vaccines

RFK Jr.'s vaccine claim baffles experts

In a move that shocked scientists and rattled markets, health secretary Robert F. Kennedy Jr. claimed in a CBS News interview that single-antigen vaccines — like some for Covid-19 — don't work against respiratory illnesses. Experts, of course, say this is scientifically false.

"He's wrong," said Paul Offit, an infectious disease expert at Children's Hospital of Philadelphia. "He believes falsely that a single protein vaccine can't effectively prevent a serious mucosal infection and of course it can. We have several examples."

The remarks come ahead of key FDA decisions on Covid vaccine approvals, including one for Novavax, which saw its stock plummet 20% following Kennedy's comments. The agency is also studying applications from Moderna and Pfizer to have their pediatric Covid vaccines given full licenses, and will also be deciding whether to approve a next-generation Covid shot that has been developed by Moderna. 

Read more.


manufacturing

Novartis investing $23 billion in U.S. drug plants

Novartis will spend $23 billion to build and expand 10 facilities across the U.S. as part of a broader $50 billion push to localize drug production amid President Trump's looming tariffs. The Swiss pharma giant will open six new manufacturing plants. Two are already slated for Florida and Texas to make cancer drugs, and another will be an R&D site in San Diego.

Drugmakers like Eli Lilly and Johnson & Johnson have also committed billions recently to expand their U.S. manufacturing footprints.

"We believe we can manage the tariffs — though of course they will be very painful — so while that is a factor [behind this investment], it's not the driving factor," CEO Vas Narasimhan told Reuters.



podcasts

The future of obesity drugs stretches far past obesity

Is there more funding coming for the biotech industry? Will the pharmaceutical industry be hit with tariffs? And is it possible to reason with RFK Jr.?

We talk about all that and more on this week's episode of "The Readout LOUD," STAT's biotech podcast. John Crowley, the CEO of industry lobbying group BIO, joins us to discuss the layoffs at the Food and Drug Administration, RFK Jr.'s comments on Novavax's Covid-19 vaccine, and how the trade group is communicating with the Trump administration.

Then, hosts Adam, Elaine, and Allison discuss the latest news on the stock market and a congressional advisory group's recommendation that $15 billion be invested in U.S. biotechnology to ward off encroaching competition from China.

Listen here.


BANKRUPTCY

Treasury urged to probe 23andMe's DNA data sale

A bankrupt 23andMe is preparing to auction off its assets, including its consumer DNA and health data. So Sen. Bill Cassidy (R-La.), chair of the Senate health committee, is calling on the Treasury Department, through the Committee on Foreign Investment in the United States (CFIUS), to ensure that any data do not wind up in the hands of China or other foreign adversaries.

In letters to the Treasury and the company, Cassidy demanded national security interests be protected and criticized 23andMe's refusal to involve a neutral third party. The company, fresh off a $30 million data breach, settlement, insists it'll honor privacy policies during the sale. The Justice Department recently issued a final rule prohibiting the sale of genomic data to "countries of concern."


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More reads

  • Arkansas may force companies to choose between running a PBM or pharmacies, STAT

  • Pfizer shakes up R&D footprint in San Diego with $255M site sale, 56 layoffs, FierceBiotech

Thanks for reading! Until next week,


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