AstraZeneca announces $50B of investment in U.S. by 2030
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The Hill
2 hours ago
- The Hill
AstraZeneca investing $50B in US, Trump calls it an ‘honor'
British-Swedish pharmaceutical company AstraZeneca announced a $50 billion investment in the U.S. this week, with the Trump administration claiming some credit due to its tariff policy and President Trump calling it an 'honor.' The company announced the investment on Monday, saying it would invest $50 billion into the country by 2030 to build on 'America's global leadership in medicines manufacturing and R&D.' The investment includes a 'drug substance facility' in Virginia, which AstraZeneca says will be its largest single manufacturing investment in the world. Virginia Gov. Glenn Youngkin (R) thanked AstraZeneca for its investment and the jobs that it's expected to generate. 'Advanced manufacturing is at the heart of Virginia's dynamic economy, so I am thrilled that AstraZeneca, one of the world's leading pharmaceutical companies, plans to make their largest global manufacturing investment here in the Commonwealth,' Youngkin said. Additional funds will go towards the company's existing or planned facilities in California, Indiana, Maryland, Massachusetts and Texas. AstraZeneca estimated these investments will help it reach a total revenue of $80 billion by 2030. '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,' Commerce Secretary Howard Lutnick said in a statement. 'We are proud that AstraZeneca has made the decision to bring substantial pharmaceutical production to our shores. This historic investment is bringing tens of thousands of jobs to the US and will ensure medicine sold in our country is produced right here.' Trump noted the investment at the start of a meeting with Philippines President Ferdinand Marcos Jr. on Tuesday. 'We have a big announcement, AstraZeneca, the big drug company, is going to spend $50 billion — just announced — $50 billion in the United States in order to build various places all over the country big manufacturing plants, pharmaceutical plants all over the country,' Trump said. 'So, that's an honor. And you said they did that because of the election and because of the fact the tariffs are in place. So they are building their facilities in New York. 50 billion, that's a big investment. It's going to be a very good investment. I have no doubt about it. So, thank you so AstraZeneca.' It wasn't immediately clear what New York investment Trump was referring to. AstraZeneca currently has an office located in New York.
Yahoo
3 hours ago
- Yahoo
AstraZeneca to invest $50 bn in the US as tariff threat looms
AstraZeneca's announcement included a new factory in the US state of Virginia, which will be the company's 'largest single manufacturing investment' (Jonathan NACKSTRAND) British pharmaceutical giant AstraZeneca said Tuesday it would invest $50 billion in the United States by 2030 amid US leader Donald Trump's threats to impose tariffs on the sector. The funds will boost its manufacturing and research operations in the US, including the construction of a multi-billion-dollar factory in Virginia, the company said in a statement. "Today's announcement underpins our belief in America's innovation in biopharmaceuticals," chief executive Pascal Soriot said. The US president has opened the door to potential tariffs targeting pharmaceuticals, which had up to now benefited from exemptions to his sweeping levies on imports from trading partners. He ordered an investigation into pharmaceutical imports, suggesting levies could reach up to 200 percent. The United States is a key market for the pharmaceutical industry, and AstraZeneca said it expects 50 percent of its revenue to come from the US by 2030. AstraZeneca has already begun transferring part of its European production to the United States, it announced in April. Trump on Tuesday thanked AstraZeneca, saying it was "an honour". The $50 billion is "a big investment, and it's going to be a very good investment, I have no doubt about it," Trump said. He added it would allow the company "to build various places all over the country, big manufacturing plants, pharmaceutical plants all over the country". While the drugmaker could become exposed to US levies on its European-made products, Soriot has said the impact would be limited due to the ongoing shift in production. - 'Losing patience' - Other major pharmaceutical companies, which had been exempt from tariffs for 30 years, have in recent months begun shifting investment and production to the United States. Swiss pharmaceutical giants Roche and Novartis and France's Sanofi have all announced multi-billion-dollar investments in the US. "For decades, Americans have been reliant on foreign supply of key pharmaceutical products," US Commerce Secretary Howard Lutnick said in a statement. He added the new tariffs are focused on "ending this structural weakness". Tuesday's announcement included a new factory in Virginia, which will be the company's "largest single manufacturing investment". It adds to AstraZeneca's previously announced $3.5 billion investment in the US by 2026. "Soriot implied ... that AstraZeneca wasn't wedded to a particular country and that it would invest wherever it made financial sense," said AJ Bell investment director Russ Mould.
Yahoo
5 hours ago
- Yahoo
London IPO fundraising slumps in blow to UK
Fundraising from London's initial public offering (IPO) scene slumped in the first half of 2025, with just nine initial public offerings (IPOs) raising £182.8m ($246.2m) – raising questions about the fading allure of the UK as a hub for global capital. The bleak figures mark a steady decline from the same period last year, when eight IPOs generated £526.7m in H1 2024. The downturn continued in the second half of 2024, with nine IPOs raising £258m, according to data released by law firm White & Case LLP. London's most significant IPO of 2025 to date came in April with the listing of professional services company MHA (MHA.L), which raised £98m on the Alternative Investment Market (AIM). Read more: How to build passive income However, the City's ongoing struggle to maintain its position as a destination for high-growth tech listings is evident, as major firms like AstraZeneca (AZN.L) and Wise (WISE.L) explore shifting their listings to the US. Reports suggest that AstraZeneca's (AZN.L) CEO is considering relocating the pharmaceutical company's primary listing to the US, while money transfer service Wise (WISE.L), valued at £11bn, plans to follow suit next year. Online fast fashion giant Shein has filed for an IPO in Hong Kong as it struggled to gain the go-ahead from Chinese regulators for a flotation in London. "Shein's listing would have been a boost to the market," Alasdair Steele, corporate partner with law firm CMS, told Reuters. "However, there was never any guarantee that a single large listing would reignite the IPO market." In February, Unilever (ULVR.L) said it had chosen Amsterdam for the main listing of its ice cream business. That follows a string of London-listed companies that have either moved to a different market, such as online betting company Flutter (FLTR.L) Other major companies, such as Shell (SHEL.L), have considered a move. Despite these lacklustre figures, the market recently experienced a boost when Norwegian software giant Visma reportedly chose London over Amsterdam for its €19bn (£16.2bn) IPO. This shift comes at a critical time as London seeks to remain relevant amid global competition for tech listings. London IPO activity could jump from September Despite the challenges, Jonathan Parry, a partner in White & Case's Capital Markets group, sees potential in the UK capital. "The inherent strengths of London, including its deep pools of capital and liquidity, are often overlooked," he said. "As we have seen from high-profile capital raises this year, the London market functions very effectively for companies that have a compelling equity story and a strong management team." In the face of this mixed performance, UK public M&A activity has shown signs of recovery. White & Case data shows that Q2 2025 saw a surge in deal volumes, which tripled to 27 deals compared to 10 in Q1 2025. Furthermore, the total value of these transactions surged 353% to £18.5bn, up from £4.1bn in Q1. This activity was largely attributed to falling interest rates, a stable political and regulatory environment, and attractive valuations on offer. According to Parry, the growing IPO pipeline should pick up once again if the recent turbulence calms down. "This would mark a much-needed boost for the City and be a helpful reminder that London remains both Europe's preeminent financial centre and its largest listing venue," he said. Read more: Jobs data increases odds on Bank of England interest rate cut City investment bank Peel Hunt reported that most UK IPO candidates are waiting until September to decide whether to proceed with listings. The firm also said that sentiment around London listings has started to recover following a dip when US president Donald Trump announced sweeping tariffs in April. In its latest 'IPO Speedometer' report, Peel Hunt stated that the UK IPO market remains "selectively open," with several companies looking at a post-summer "window" to potentially debut on the London Stock Exchange. "While we are still some way from a fully open UK IPO market, and there has been limited recent transaction activity, we do see conditions improving meaningfully, particularly around the broader equity market backdrop, which has turned from a headwind to a tailwind, and investor sentiment, which is increasingly constructive," Peel Hunt wrote. UK weighs changes to IPO rules to attract foreign capital Meanwhile, efforts are under way to streamline London's capital markets. The Financial Conduct Authority (FCA) has confirmed plans to reduce red tape, making it easier and quicker for companies to raise funds. Under new rules, companies listed on the London Stock Exchange will no longer need to publish lengthy prospectuses when issuing additional shares. Also, the time between the publication of initial documents and an IPO is set to be halved. The FCA's new measures will also simplify the process for corporate bond issuance to retail investors, and a new public offer platform will help smaller growth companies raise capital more easily. There are also reports that shares in UK-listed companies could soon be traded 24 hours a day under plans from the London Stock Exchange Group, or LSEG.L, (LSEG.L) to tap into booming demand from night owl traders. The LSEG (LSEG.L), which owns the London stock market, is weighing plans to launch a 24-hour trading platform, according to the Financial Times. This move is seen as a strategic attempt to boost the appeal of the UK's sluggish stock market and attract both overseas investors and younger traders keen on buying British shares at any time of day. The shift in trading patterns, particularly in the US, is reshaping how markets operate. In the US, an increasing number of transactions are being carried out outside traditional working hours by a new wave of Gen Z retail investors using smartphone apps. This has left traditional exchanges exposed to competition, as younger, tech-savvy investors opt for more flexible trading hours. Read more: Why Apple, Amazon and other tech giants are considering bitcoin Cryptocurrency markets, such as bitcoin (BTC-USD) trading, already operate around the clock, making the notion of limited trading hours for traditional equities increasingly outdated. Platforms like Robinhood have also capitalised on this trend, allowing investors to trade stocks during late hours, further adding to the perception that traditional market hours are outdated. At present, London-listed shares only trade between 8am and 4pm. These regulatory changes come at a time when companies in the UK are grappling with increasing uncertainty. A report from EY-Parthenon showed that the number of London-listed companies warning of lower profits has spiked. In Q2 2025, 59 firms issued profit warnings, a 20% increase compared to 49 during the same period last year. EY-Parthenon attributed this rising uncertainty to "rapid and unpredictable policy shifts" that have a "paralysing effect on confidence, decision-making, and spending".Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
