AstraZeneca announced on Monday (July 21) its plan to invest $50 billion in the United States by 2030 to expand pharmaceutical and research facilities, covering six states. This marks the largest single capital expenditure plan for the company in 26 years, with the expectation of creating tens of thousands of job opportunities. It indicates that under the Trump administration’s policies, international pharmaceutical companies are increasingly focusing on the United States.
This move is seen as a response to the policies of the Trump administration. President Trump stated that tariffs would be imposed on imported drugs and raw materials, urging pharmaceutical companies to relocate production to the United States to reduce reliance on foreign supplies and narrow the gap between drug prices in the United States and other countries.
AstraZeneca CEO Pascal Soriot stated during the investment announcement in Washington D.C. that global drug prices should be more “balanced,” with other countries bearing more of the research and development costs. He said, “The United States can no longer bear the global research and development costs alone.”
AstraZeneca plans to establish a new drug manufacturing plant in Virginia, investing in the production of active ingredients for weight loss and cholesterol-lowering drugs, including GLP-1 oral medications and PCSK9 inhibitors. Additionally, the company will expand research and cell therapy production facilities in Maryland, Massachusetts, California, Indiana, and Texas.
The company stated that this expansion will help achieve a target of $800 billion in annual revenue by 2030, with half expected to come from the U.S. market. As of 2024, the U.S. market accounted for over 40% of AstraZeneca’s annual revenue. This indicates that even before Trump returned to the White House, AstraZeneca had prioritized the U.S. market.
The U.S. pharmaceutical market is worth $635 billion, ranking first globally.
AstraZeneca noted that the investment is expected to create tens of thousands of new job opportunities, but specific numbers were not disclosed. The company currently has around 18,000 employees in the U.S. and a global workforce of approximately 90,000.
The U.S. Department of Commerce is conducting an investigation into drug imports, which could pave the way for new tariff imposition. Commerce Secretary Howard Lutnick stated, “For decades, the United States has relied on foreign supplies for critical drugs. President Trump and our new tariff policy aim to end this structural weakness.”
Despite the continuous pressure from the Trump administration, earlier this month Trump also mentioned giving pharmaceutical companies a “transition period” of one to one and a half years before imposing taxes officially. AstraZeneca’s investment announcement is seen as a timely response to policy risks.
This $50 billion investment commitment is on par with the investment scale announced by AstraZeneca’s Swiss competitor Roche in April this year. Meanwhile, companies like Eli Lilly & Co, Johnson & Johnson, Novartis, and Sanofi have also announced new investment plans in the United States this year.
Virginia Governor Glenn Youngkin, a staunch ally of Trump and supporter of his tariff policies, also attended AstraZeneca’s announcement event.
(Reference: Reuters)