AstraZeneca Commits $50 Billion to U.S. Expansion Amid Tariff Pressures
AstraZeneca announced on Monday its plan to invest $50 billion in the United States by 2030 to expand its manufacturing and research operations, marking the latest major move by a pharmaceutical firm in response to President Donald Trump’s evolving trade policy.
The funds will go toward building a new drug manufacturing plant in Virginia and boosting R&D and cell therapy production capabilities in Maryland, Massachusetts, California, Indiana, and Texas, according to the company’s statement.
This expansion will also modernize AstraZeneca’s U.S. clinical trial supply chain and reinforce ongoing efforts in developing innovative medicines.
The investment supports AstraZeneca’s goal of reaching $80 billion in annual revenue by 2030, with half of that projected to come from the U.S., the world’s largest pharmaceutical market. In 2024, over 40% of the company’s revenue came from the U.S.
Even before Trump’s return to the presidency, AstraZeneca had been prioritizing the U.S. market. Now, with potential tariffs targeting imported pharmaceutical products, the company is further cementing its U.S. presence. Historically, the pharmaceutical sector had largely avoided being dragged into trade disputes.
President Trump has urged pharmaceutical companies to manufacture more domestically rather than relying on imported ingredients or finished drugs. He’s also been vocal about reducing drug prices in the U.S. to align more closely with those in other countries.
AstraZeneca CEO Pascal Soriot presented the plan in Washington, arguing that other countries should pay more to help fund innovation. “The U.S. cannot bear the cost of global R&D alone,” Soriot said, advocating for a more balanced global contribution to drug development.
Meanwhile, U.S. Commerce Secretary Howard Lutnick confirmed that his department is investigating pharmaceutical imports, a process that could lay the groundwork for future tariffs. He stated: “For decades, Americans have depended on foreign sources for key pharmaceutical products. Our new tariff policies aim to end this vulnerability.”
Although Trump has threatened the industry with tariffs, he recently suggested companies would have 12 to 18 months to adapt before any new levies are enforced.
AstraZeneca acknowledged that the timing and location of the announcement were influenced by the U.S. political climate, though parts of the investment were already planned to support its next generation of treatments.
This $50 billion commitment comes on top of a $3.5 billion investment the company disclosed in November 2024.
Industry-Wide Investment Surge
AstraZeneca’s pledge matches a similar $50 billion investment by Swiss rival Roche made in April and follows additional spending announcements this year by Eli Lilly, Johnson & Johnson, Novartis, and Sanofi.
Virginia Governor Glenn Youngkin, a strong Trump supporter and advocate of the administration’s trade stance, attended the announcement ceremony.
The new Virginia facility — AstraZeneca’s largest single investment in manufacturing — will focus on producing active ingredients for the company’s pipeline of weight-loss and cholesterol drugs, including oral GLP-1 and PCSK9 inhibitor candidates.
While AstraZeneca indicated that the project could create tens of thousands of jobs, it declined to provide an exact figure. The company currently employs around 18,000 people in the U.S., with a global workforce of 90,000.
Earlier this year, AstraZeneca scrapped a £450 million ($607 million) investment plan for a vaccine production facility in northern England, citing reduced government support.
Additionally, The Times recently reported that AstraZeneca is exploring a possible relocation of its stock market listing from London to the U.S., though the company has not commented on the matter. AstraZeneca remains the most valuable company on the London Stock Exchange, with a market capitalization of £159 billion.
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