AstraZeneca says to invest $50bn in the US
A large chunk of the funds will go toward building a multi-billion-dollar manufacturing centre in Virginia, the company said in a statement, adding that it expects 50 percent of its revenue to come from the United States by 2030.
'Today's announcement underpins our belief in America's innovation in biopharmaceuticals,' the statement quoted CEO Pascal Soriot as saying.
US President Donald Trump has opened the door to potential tariffs targeting pharmaceuticals, which have so far benefited from exemptions to his sweeping levies on imports from trading partners.
He ordered an investigation launched into pharmaceutical imports, suggesting that levies could reach up to 200 percent.
AstraZeneca to buy EsoBiotec for up to $1 billion
The United States is a key market for the pharmaceutical industry, and AstraZeneca had already announced in April that it had begun transferring part of its European production to the United States.
'For decades Americans have been reliant on foreign supply of key pharmaceutical products,' US Commerce Secretary Howard Lutnick said in a statement.
He added that the new tariffs are focused on 'ending this structural weakness'.
The announcement included a new factory in Virginia, which will be the company's 'largest single manufacturing investment'.
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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
8 minutes ago
- Business Recorder
Trade talks: Finance minister Aurangzeb leaves for US
Finance minister Muhammad Aurangzeb departed on Monday for the United States (US) 'to conclude Pakistan-US trade talks', a statement from the Finance ministry said. During the visit, final discussions on the Pakistan-US trade dialogue would take place, it added. 'There are vast opportunities for partnership between the two countries in key sectors such as IT, minerals, and agriculture.' Pakistan has been seeking to fetch a trade deal with the US since after President Donald Trump announced reciprocal tariffs on countries around the world in April this year. Pakistan formally initiated talks with the US on the reciprocal tariffs in May, with both sides exchanging viewpoints through an engagement with the understanding that technical level detailed discussions would follow in the coming weeks. Finance ministry on Monday said the formation of a trade agreement between the two countries would benefit both economies. 'Strong trade and economic relations are a key pillar of Pakistan-US bilateral ties. 'The United States is Pakistan's largest trading partner. 'Pakistan is keen to expand bilateral trade relations into both traditional and non-traditional sectors,' the statement read. Bilateral ties between Pakistan and US have improved in recent times, with Trump's holding a rare meeting with Field Marshal Asim Munir at the White House.
Business Recorder
38 minutes ago
- Business Recorder
European shares close lower as US-EU trade deal draws mixed response
European shares pulled back from a four-month high and settled Monday's choppy session marginally lower as investors weighed the implications of a framework trade agreement between the United States and the European Union. The pan-European STOXX 600 index rose as much as 1% to touch a four-month high on initial relief that prolonged negotiations yielded a deal that said a 15% U.S. tariff will be slapped on most EU goods - a significant reduction from the previously threatened 30% rate. However, the index closed 0.2% lower as the deal quashed hopes for a zero-for-zero agreement and an average rate last year of around 2.5%. 'While the 15% tariff on most EU exports is lower than the threatened 30%, it's still a sharp jump from pre-2025 levels when many goods faced tariffs under 3%, and is likely to add to inflationary pressures in the months ahead,' Lale Akoner, global market analyst at eToro, said. Auto-related stocks were among top sectoral underperformers with a 1.7% decline. The baseline tariff brings levies for the auto industry down from the 27.5% faced before. Spirits stocks Pernod Ricard and Anheuser-Busch inBev slipped 3.5% and 3.6%, respectively, as the trade deal did not contain any decision regarding the spirits sector. European shares settle lower as investors gauge mixed earnings, EU-US trade progress Heineken dropped the most on the benchmark index, down 8.5%, after the Dutch brewer said it was weighing all options to deal with growing tariff challenges long-term, including shifting manufacturing. The deal also said EU member states will purchase U.S. military equipment, without specifying an amount. The STOXX defence sector ended 1.3% lower. The benchmark STOXX index has gained about 19% since the initial shock after Trump initially threatened tariffs in early April. It is now within 2.5% of its March all-time high. 'We're actually neutral on both U.S. and European stocks, but on the short term if we have to think till the year end, we're more positive actually on U.S. versus European stocks,' said Anthi Tsouvali, multi-asset strategist at UBS Wealth. On the flip side, energy sector stocks rose 1.1%, as oil prices were boosted after the trade deal. Technology shares advanced 0.6% as ASML, the world's biggest supplier of computer chip-making equipment, gained 4.9% on expectations that the sector might be exempted from tariffs. The healthcare sector was also marginally higher. Investors face a week with several market-moving events including policy decisions from the Federal Reserve and Bank of Japan, earnings from 'Magnificent Seven' tech companies like Apple and Microsoft, and the August 1 tariff implementation deadline.
Business Recorder
38 minutes ago
- Business Recorder
Industrial stocks drag UK equities, investors assess US-EU trade deal
London's main stock indexes closed lower on Monday, pressured by industrial shares, while investors assessed a U.S.-EU trade deal along with economic data. The blue-chip FTSE 100 reversed earlier gains with a 0.4% fall, while the domestically focused midcap FTSE 250 index fell 0.8%. The U.S. struck a framework trade agreement with the EU on Sunday, which imposes a 15% tariff on most EU goods and requires the bloc to invest around $600 billion in the United States. However, some European capitals complained it was lopsided in favour of Washington. Meanwhile, data showed on Monday a downturn in British retail sales extended into its tenth month in July as rising prices weighed on consumers, although the pace of the fall was less severe than in June. Also on Monday, the U.S. and China met in Stockholm to resume talks to resolve longstanding economic disputes at the centre of a trade war between the world's top two economies, aiming to extend a truce by three months. In the market, the industrial subindex led the broader sectoral decline, down 1.6%, with RS Group falling 3.1%. Precious and industrial metal miners fell nearly 1% and 0.9% respectively, tracking lower gold and metal prices. Conversely, energy stocks rose 1.2% as oil prices rose. Heavyweight BP gained the most in the FTSE 100, up 2.2%. Among individual stocks, Ocean Wilsons Holdings slipped more than 14% after the British investment holding company agreed to an all-share merger with Hansa Investment , creating a £900 million ($1.21 billion) diversified investment firm. The Bank of England is expected to slow the pace soon at which it shrinks its 558 billion-pound ($754 billion) holdings of government bonds, with economists hoping for some clarity next week on the central bank's longer-term goals for the stockpile. Traders are currently pricing in an 86.5% chance of a 25 basis point BoE interest rate cut on August 7, according to data compiled by LSEG.
