AstraZeneca announces $50 billion U.S. manufacturing investment, matching its big pharma peers
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AstraZeneca announces $50 billion US manufacturing investment, matching its big pharma peers
AstraZeneca said it is investing $50 billion in US manufacturing by 2030. The commitment is the largest investment to date, according to the company in a statement Monday. It includes expansions of current sites, including in Maryland and Massachusetts, as well as a new facility in Virginia. The company currently relies on the US market for 42% of its revenue, but CEO Pascal Soriot said he hopes to increase that to 50% of revenues with this move. The strategy to invest billions in manufacturing is one being deployed by the industry in order to curry favor with President Donald Trump and his reshoring agenda. This is in hopes of avoiding strict tariffs on imported drug components manufactured abroad.
The commitment is the largest investment to date, according to the company in a statement Monday. It includes expansions of current sites, including in Maryland and Massachusetts, as well as a new facility in Virginia.
“The cornerstone of this landmark investment is a new multi-billion dollar US manufacturing facility that will produce drug substances for the Company’s innovative weight management and metabolic portfolio, including oral GLP-1, baxdrostat, oral PCSK9 and combination small molecule products,” the company said. “The new state-of-the-art centre will produce small molecules, peptides and oligonucleotides.”
UK-based AstraZeneca said it currently relies on the US market for 42% of its revenue, but CEO Pascal Soriot told Yahoo Finance he hopes to increase the US market share to 50% of revenues with this move. AstraZeneca, known for vaccines and its oncology drugs Tagrisso and Imfinzi, is now also eyeing cardio-metabolic diseases — thanks to the rise in popularity of GLP-1s.
“We have bet on oral (GLP-1 pills) because we think they are going to be easier for patients because they will be cheaper, more accessible, and we’ll be able to export them around the world,” Soriot said.
CEO AstraZeneca Pascal Soriot speaks during a visit at the AstraZeneca global Research and Development facility at the Cambridge Biomedical Campus on November 23, 2021 in Cambridge, England. (Photo by Chris Jackson/Getty Images) · Chris Jackson via Getty Images
The strategy to invest billions in manufacturing is one being deployed by the industry in order to curry favor with President Donald Trump and his reshoring agenda. This is in hopes of avoiding strict tariffs on imported drug components manufactured abroad. Soriot told Yahoo Finance he isn’t as worried about exposure to tariffs, and believes the tax and economic incentives the U.S. offers is enough to spur the transition to more U.S.-based manufacturing.
“I think tariffs are an issue, and a threat for some companies. To some extent, we are insulated, and we will be further insulated with the investments we are making now,” Soriot said.
Some of the largest investment commitments to date have been Johnson & Johnson’s (JNJ) $55 billion announcement and Eli Lilly’s (LLY) $50 billion one. With a previous $3.5 billion announced in November 2024, the new $50 billion commitment puts AstraZeneca in second.
Trump has promised the pharma industry will face tariffs starting Aug. 1. Industry leaders have pleaded with the administration for more time, and Trump has hinted the tariffs could be phased-in, as the companies work to bring their manufacturing onshore.