UK pharma giant AstraZeneca to invest $50B in US
What's the story
British pharmaceutical giant AstraZeneca has announced its plan to invest a whopping $50 billion in the United States by 2030. The move comes as a response to the looming threat of increased tariffs from Washington. A major chunk of this investment will be used to set up a manufacturing facility in Virginia, according to statements from the company.
Forecast
Half of AstraZeneca's revenue should come from US
AstraZeneca expects that by 2030, half of its revenue will come from the US market. "Today's announcement underpins our belief in America's innovation in biopharmaceuticals," said Pascal Soriot, CEO of AstraZeneca. The investment comes amid President Donald Trump's threats to impose tariffs as high as 200% on drugs manufactured outside the US.
Job creation
Investment expected to create tens of thousands of jobs
The massive investment by AstraZeneca is also expected to create tens of thousands of jobs in the US. The company's commitment comes as part of a wider trend among pharmaceutical firms, who are announcing investments in the country amid the threat of punitive tariffs. Other companies such as Roche, Novartis, and Johnson & Johnson have also announced major investments in US manufacturing and R&D facilities.
Tariff impact
Tariffs are aimed at reducing dependence on foreign supply
The decision by AstraZeneca to invest heavily in the US comes as the Trump administration's tariffs are aimed at reducing dependence on foreign supply of essential drugs. Howard Lutnick, US Commerce Secretary, welcomed the move saying it would bring "substantial pharmaceutical production to our shores." He added that the investment is expected to create tens of thousands of jobs and ensure medicines sold in America are produced domestically.
Revenue growth
AstraZeneca aims to hit $80B revenue by 2030
The $50 billion investment by AstraZeneca will also help the company achieve its goal of hitting $80 billion in revenue by 2030. Back in 2024, the company reported revenues of $54.1 billion.