AstraZeneca vows to spend US$50bil on US manufacturing boost
The investment will go towards manufacturing as well as research and development, Astra said in a statement.
It includes US$4bil 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 at an event in Washington.
'With the completion of this investment, substantially all of AstraZeneca's pharmaceuticals sold in the United States will be produced in the United States,' he said.
Astra will also manufacture its experimental weight-loss pill at the facility in Virginia, following an earlier pledge from rival Eli Lilly & Co, which is also planning to make its obesity pill in the United States.
The announcement comes as European drug companies rush to highlight their US investments with the aim of mitigating the impact of tariffs from President Donald Trump.
Astra already announced plans in November, a week after Trump's election, to invest US$3.5bil in the United States by the end of 2026, noting at the time that it employs nearly 18,000 people in the country.
The company said the latest investment announcement is in addition to that earlier amount.
Since Trump's election, European competitors have touted ever-larger spending plans. Switzerland's Novartis AG in April announced plans for US$23bil in US-based infrastructure spending, while cross-town rival Roche Holding AG said it would invest US$50bil.
In May, French drugmaker Sanofi announced intent to invest at least US$20bil in the United States by 2030.
Pascal Soriot, who's been chief executive officer of Astra since 2012, had urged tariff restraint from US policymakers.
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.
On Monday, Soriot said he understands the need for countries to have medicines manufactured domestically.
'It's a question of national security,' he said. 'This is a vision that the president and his administration have put out there, and a vision that we totally understand, totally support, and the tariffs are accelerating a movement that we would have made in any case.'
Trump has proposed various timelines for tariffs on pharmaceuticals, most recently floating duties that would start as soon as Aug 1.
The president said he expects to give companies a year to bring manufacturing to the United States before imposing tariffs as high as 200%.
Meanwhile, Soriot has raised concerns in the United Kingdom about his company's commitment to its home country.
He has long complained about the United Kingdom's regulatory environment, which he says is a threat to hold the nation back from staying competitive with the United States and China.
In January, Astra abandoned plans for a £450mil 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 United States. — Bloomberg
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