AstraZeneca vows to spend US$50 billion on US manufacturing, development
The investment will go towards manufacturing as well as research and development, Astra said in a statement. It includes US$4 billion for a new facility in Virginia that will make drugs for chronic diseases, Kevin Hassett, director of the US National Economic Council, said on Monday (Jul 21) at an event in Washington, DC.
'With the completion of this investment, substantially all of AstraZeneca's pharmaceuticals sold at the United States will be produced in the United States,' Hassett said.
Astra's announcement comes as European drug companies rush to highlight their significant footprints in the US in hopes of mitigating the impact of any potential tariffs from US President Donald Trump. Astra already announced plans in November, a week after Trump's election, to invest US$3.5 billion in the US by the end of 2026, noting at the time that it employs nearly 18,000 people in the country.
Since then, European competitors have touted even larger spending plans. Switzerland's Novartis in April announced plans for US$23 billion in US-based infrastructure spending, while cross-town rival Roche Holding said it would invest US$50 billion. In May, French drugmaker Sanofi announced intent to invest at least US$20 billion in the US by 2030.
Pascal Soriot, who's been chief executive officer of Astra since 2012, has also urged tariff restraint. This spring, he recommended that US officials exempt medicines from tariffs, arguing that tax incentives are a better way to attract investment in drug development and manufacturing.
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Trump has proposed various timelines for tariffs on pharmaceuticals, most recently floating duties that would be imposed as soon as Aug 1. The president said that he expects to give companies a year to bring manufacturing to the US before imposing tariffs as high as 200 per cent.
Meanwhile, Soriot has raised concerns in the UK about his commitment to the home country. He has long complained about the UK's regulatory environment, which he says is a threat to hold back the UK from staying competitive with the US and China.
In January, Astra abandoned plans for a £450 million (S$777 million) vaccine manufacturing plant in Liverpool. The company operates 17 manufacturing sites in 12 US states.
Earlier this month, British paper The Times reported that Soriot is considering moving the company's stock listing to the US. That would be a major blow to the UK's equity markets, which have endured similar defections from other companies in recent years.
Under Soriot's leadership, Astra's market value has more than tripled as the company has become a global powerhouse in cancer medicines. It's also built up a significant drug pipeline for other areas including cardiovascular, renal and metabolic diseases. BLOOMBERG
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