Source: Agency Report

AstraZeneca (PHOTO CREDIT: DW)

British pharmaceutical giant AstraZeneca has announced a bold $50 billion investment plan in the United States over the next five years, in what is seen as a strategic response to potential new trade tariffs being considered by the Trump administration.

The investment will support a major expansion of AstraZeneca’s manufacturing and research footprint across the U.S., with the highlight being a state-of-the-art facility in Virginia—set to be the company’s largest single manufacturing investment globally.

According to the firm, the new plant in Virginia will produce drug substances for AstraZeneca’s weight management and metabolic portfolios, reflecting rising demand in the sector. Additional funds will fuel expansion of research and development (R&D), cell therapy manufacturing, and other operations across Maryland, Massachusetts, California, Indiana, and Texas.

The announcement comes amid warnings from former President Donald Trump of imposing tariffs of up to 20% on imported pharmaceuticals, aimed at encouraging more domestic production and reducing drug costs.

“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,” said Pascal Soriot, Chief Executive Officer of AstraZeneca.

AstraZeneca said the investment will create tens of thousands of high-skilled jobs and is part of its broader “Ambition 2030” strategy, which aims to achieve $80 billion in global revenues by the end of the decade—half of which it expects to come from the U.S. market.

Although headquartered in Cambridge, UK, the company’s strongest market is the United States, where it already employs over 18,000 people and operates 19 manufacturing, R&D, and commercial sites. 42% of its total global sales currently come from the U.S. market.

The new initiative is being welcomed by U.S. officials. Howard Lutnick, U.S. Secretary of Commerce, stated:

“For decades, Americans have been reliant on foreign supply of key pharmaceutical products. President Trump’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.”