AstraZeneca to spend US$50bn on US drug manufacturing
ASTRAZENECA plans to spend US$50bn building manufacturing and research facilities in the US, following similar promises from other drugmakers after the Trump administration threatened looming import tariffs.
The UK-based firm said it will invest US$50bn in the US by 2030, and this will include its largest ever investment in a single manufacturing site. It did not say how much it would spend on the new plant, only that will be built in Virginia and will produce substances including small molecules and peptides for the manufacture of drugs for weight loss and blood pressure.
Its investment over the next five years includes building next-generation manufacturing facilities for cell therapies in Maryland and California, expanding continuous manufacturing operations in Texas and investment in various R&D activities.
AstraZeneca, which employs 18,000 people in the US, said its investment will help increase its share of sales coming out of the US from 42% today to 50% by 2030.
“Today’s announcement underpins our belief in America’s innovation in biopharmaceuticals and our commitment to the millions of patients who need our medicines in America and globally,” said AstraZeneca CEO Pascal Soriot.
The investment follows longstanding threats from US president Donald Trump to impose tariffs on pharmaceutical products. The US relies on imports for the vast majority of its active pharmaceutical ingredients according to a supply chain analysis.
US commerce secretary Howard Lutnick said: “For decades Americans have been reliant on foreign supply of key pharmaceutical products. President Trump and our nation’s new tariff policies are focused on ending this structural weakness.
In February, Trump threatened drug executives that they should build US-based manufacturing facilities or face tariffs. Novartis, Roche, Johnson & Johnson, and Eli Lilly have all since pledged multibillion dollar investments in US production. AstraZeneca’s latest investment promise is on top of the US$3.5bn it announced it would invest in the US in November.
Despite the pledges, earlier this month Trump warned drugmakers could face import tariffs of 200%.
“We’re going to be announcing pharmaceuticals, chips and various couple of other things – you know, big ones,” he said.
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