Latest news with #Anglo-Swedish
CNBC
18 hours ago
- Business
- CNBC
AstraZeneca CEO doubles down on U.S. amid rumors of listing shift
AstraZeneca CEO Pascal Soriot on Tuesday reiterated the pharmaceutical firm's commitment to the U.S. market amid reports that he is considering shifting its listing stateside. Soriot said the U.K.-listed company had many reasons to be in the U.S., adding that it was "rapidly transferring manufacturing" across the Atlantic so it could serve all U.S. patient needs domestically. "We have lots of reasons to be here [in the U.S.]," Soriot told media during an earnings call. "This country [the U.S.] will represent, we hope, 50% of our revenue by 2030. We have thousands of employees … across the country," he added. AstraZeneca has been doubling down on the U.S. market, saying in its second-quarter earnings report on Tuesday that the country was key to its ambition of delivering $80 billion in revenue by the end of the decade. "We are a global company but we are certainly, very much, present and rooted in the U.S.," Soriot said, noting that it plans to soon become self-sufficient there. The company said last week it plans to invest $50 billion in bolstering its U.S. manufacturing and research capabilities. It marks the latest pharmaceutical firm to ramp up its stateside spending in the wake of U.S. trade tariffs and calls by President Donald Trump to reshore manufacturing. "Our investment is reflecting our belief in the growth of this country. We want to contribute to this," Soriot said, noting that he had met with the Trump administration to discuss growth plans within the sector. "The U.S. really leads in biopharmaceutical innovation these days," he added, criticizing Europe's failure to drive development. "Today, very little comes out of Europe." AstraZeneca, which made international headlines by developing one of the key Covid-19 vaccines, has long been prioritizing the U.S. market. The U.S. accounted for over 40% of the company's annual revenues in 2024. Earlier this month, The Times reported that the firm may move its listing from London to the U.S., in what analysts said would be a major blow to the U.K.'s public markets. AstraZeneca at the time declined to comment on the report. However, chief financial officer Aradhana Sarin said Tuesday that the company remains "committed" to the U.K. It comes as AstraZeneca posted better-than-expected second-quarter earnings on Tuesday, driven by demand for key cancer and biopharmaceutical products. The Anglo-Swedish pharma firm posted revenues of $14.46 billion over the three-month period to June 30, ahead of the $14.07 billion estimated by analysts in an LSEG poll. Quarterly adjusted core operating profit came in at $4.58 billion versus $4.48 billion anticipated. The FTSE 100 company maintained its full-year forecast for revenues to rise by a high single-digit percentage and core earnings per share to increase by a low double-digit percentage. It comes as the European pharmaceutical sector is facing anticipated levies of 15% on imports to the U.S. as part of a broader EU-U.S. trade deal. Analysts warned that the tariffs, if levied at 15% or above, could hamper European firms and the bloc's broader economy. AstraZeneca nevertheless suggested in April that it would maintain its 2025 sales guidance if U.S. tariffs on European pharma products came in in line with those levied against other sectors. "This issue of tariffs is not really an issue that is affecting us very much," Soriot said.
New Straits Times
a day ago
- Business
- New Straits Times
AstraZeneca beats profit expectations on robust drug sales, US demand
LONDON: AstraZeneca beat second-quarter profit forecasts on robust sales of cancer, heart and kidney disease drugs and strong demand in the US, where it has invested US$50 billion to expand amid tariff threats from President Donald Trump. The beat is a boost for the drugmaker as the wider sector braces for US tariffs on pharmaceutical imports and navigates pricing challenges after Trump's order pushing for prices in the US to fall to what other countries pay. The firm's shares rose around one per cent in early trading on Tuesday. AstraZeneca, the UK's largest-listed company by market value, in April had forecast only a limited impact from potential US tariffs on pharmaceutical imports, and said it would be able to meet its annual outlook if the levies on European imports were similar to those in other industries. A European Union–US trade deal over the weekend will result in a 15 per cent tariff on pharmaceuticals from the region. The Anglo-Swedish drugmaker, which is targeting US$80 billion in annual revenue by 2030, maintained its annual outlook and increased its interim dividend by three per cent. "Our strong momentum in revenue growth continued through the first half of the year and the delivery from our broad and diverse pipeline has been excellent," CEO Pascal Soriot said in a statement. Sales of AstraZeneca's oncology drugs, which make up nearly half of its revenue and are being weighed down by changes in US Medicare price negotiations, were up 18 per cent at US$6.31 billion at constant currency rates for the three-month period ended June 30. Analysts at Jefferies said sales of key cancer drugs such as Tagrisso, Lynparza, Calquence, Truqap and Imfinzi were ahead of expectations. Total revenue grew 11 per cent to US$14.46 billion, with core earnings of US$2.17 per share, and double-digit growth in the US, which makes up more than 40 per cent of sales. That compares with analysts' expectations of US$14.15 billion and US$2.16, respectively, according to a company-provided consensus. AstraZeneca, which is hoping to move on from scandals in its second-biggest market, China, where it also faces minor fines related to cancer drugs, said it was also fighting several patent challenges from an individual against Tagrisso.
Irish Examiner
22-07-2025
- Business
- Irish Examiner
AstraZeneca says new facility in Dublin on target for 2026 completion
Drug maker AstraZeneca has announced plans to invest $50bn (€42.6bn) in the US over the next five years amid the looming threat of US president Donald Trump's trade tariffs. The firm said the investment will fund a new "state-of-the-art" manufacturing facility in Virginia - set to be its largest single manufacturing investment in the world. It will also expand research and development (R&D) and cell therapy manufacturing in Maryland, Massachusetts, California, Indiana and Texas. In 2021 AstraZeneca said it was investing €300m to establish a next-generation active pharmaceutical ingredient (API) manufacturing facility for small molecules in Dublin. Those plans are unaffected by the US announcement, a spokesperson told the Irish Examiner. "In line with our plans, the construction of our synthetic drug substance commercialisation facility in Ireland is scheduled for completion in 2026," said the spokesperson. The US announcement marks the latest by a global pharmaceutical giant to expand its footprint in the US as Mr Trump has threatened to impose tariffs of up to 20% on drug imports in an effort to increase manufacturing in America and drive down costs for Americans. AstraZeneca said the mammoth investment will create tens of thousands of jobs across the US, "powering growth and delivering next-generation medicines for patients in America and worldwide". The Anglo-Swedish group, which is listed on the FTSE 100, said the investment will also help it towards the group's target of reaching $80bn (€60bn) in revenues by 2030, with half of this is expected to come from the US, it added. Despite being headquartered in the UK, America is AstraZeneca's largest market, where it employs more than 18,000 staff and makes 42% of total group sales. It already has 19 R&D, manufacturing and commercial sites across the country.
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Business Standard
22-07-2025
- Business
- Business Standard
AstraZeneca unveils $50 bn US investment as pharma tariff threat looms
AstraZeneca plans to spend $50 billion to expand manufacturing and research capabilities in the U.S. by 2030, it said on Monday, the latest big investment by a pharmaceutical company reacting to President Donald Trump's tariff policy. The investment will fund a new drug manufacturing facility in Virginia and expand research and development (R&D) and cell therapy manufacturing in Maryland, Massachusetts, California, Indiana and Texas, it said in a statement. It will also upgrade the Anglo-Swedish drugmaker's U.S. clinical trial supply network and support ongoing investment in novel medicines. On Monday, AstraZeneca said the expansion supports its ambition to reach $80 billion in annual revenue by 2030, with half coming from the U.S. The U.S. accounted for more than 40% of AstraZeneca's annual revenue in 2024, and the company had been prioritising the market - the world's largest, worth $635 billion - before Trump's return to office. The move to scale up its U.S. footprint is the latest by a drugmaker as Trump threatens to impose import tariffs on the industry and seeks to boost domestic manufacturing. The sector has historically been spared from trade disputes. Trump has called on pharma companies to make more of the medicines they sell in the U.S. within the country, rather than importing active ingredients or finished medicines. He is also pushing for prices in the U.S. to fall to what other countries pay. CEO Pascal Soriot announced the plans in Washington, saying he believes that drug prices need to rise elsewhere and "equalize" with other countries effectively contributing more to research and development costs. "The United States cannot build or carry the cost of R&D for the entire world," he said. U.S. Commerce Secretary Howard Lutnick's department is leading a probe into pharmaceutical imports that could pave the way for new tariffs. "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," said Lutnick in a statement issued by AstraZeneca. While Trump has repeatedly threatened tariffs on the sector, he signalled earlier this month that companies would be given a year to 18 months to "get their act together" before any levies take effect. The company said that the timing and location of the announcement was linked to the U.S. policy environment, though some of the spending would have occurred regardless so that the infrastructure for future medicines was in place. The pledge is in addition to the $3.5 billion in investments the company announced in November 2024, the statement said. PLEDGES The $50 billion pledge matches the commitment announced by Swiss rival Roche in April and follows new spending plans unveiled this year by Eli Lilly & Co, Johnson & Johnson , Novartis, and Sanofi. Also present at the announcement was Virginia State Governor Glenn Youngkin, a vocal Trump ally who has defended the administration's tariff policies. The new Virginia facility - the company's largest single manufacturing investment - will produce active ingredients for AstraZeneca's experimental weight-loss medicines, including its oral GLP-1 candidate and an oral PCSK9 inhibitor for cholesterol management, it said. The company said the investment could create tens of thousands of new jobs, but declined to give specifics. It employs about 18,000 people in the U.S. and has a global workforce of about 90,000. In January it scrapped plans to invest 450 million pounds ($607.1 million) in its vaccine manufacturing plant in northern England, citing a cut in government support. Earlier this month, The Times reported the company was considering moving its stock market listing from London, where it is the exchange's most valuable company worth 159 billion pounds, to the U.S. The company declined to comment.
North Wales Chronicle
22-07-2025
- Business
- North Wales Chronicle
AstraZeneca unveils plans for £37bn investment in US amid tariff threats
The Cambridge-headquartered firm said the investment will fund a new 'state-of-the-art' manufacturing facility in Virginia – set to be its largest single manufacturing investment in the world. It will also expand research and development (R&D) and cell therapy manufacturing in Maryland, Massachusetts, California, Indiana and Texas. The announcement marks the latest by a global pharmaceutical giant to expand its footprint in the US as Mr Trump has threatened to impose tariffs of up to 20% on drug imports in an effort to increase manufacturing in America and drive down costs for Americans. AstraZeneca said the mammoth investment will create tens of thousands of jobs across the US, 'powering growth and delivering next-generation medicines for patients in America and worldwide'. The Anglo-Swedish group, which is listed on the FTSE 100, said the investment will also help it towards the group's target of reaching 80 billion US dollars (£59.4 billion) in revenues by 2030. Half of this is expected to come from the US, it added. Pascal Soriot, chief executive of AstraZeneca, said: 'Today's announcement underpins our belief in America's innovation in biopharmaceuticals and our commitment to the millions of patients who need our medicines in America and globally.' Despite being headquartered in the UK, America is AstraZeneca's largest market, where it employs more than 18,000 staff and makes 42% of total group sales. It already has 19 R&D, manufacturing and commercial sites across the country. The new factory planned for Virginia will produce drug substances for the company's weight management and metabolic portfolio, it said. Howard Lutnick, US Secretary of Commerce, said: '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. 'We are proud that AstraZeneca has made the decision to bring substantial pharmaceutical production to our shores.'
