AstraZeneca has announced plans to invest $50 billion in the United States by the end of the decade, responding to mounting pressure from the Trump administration for global pharmaceutical firms to shift manufacturing and research operations to American soil.
The FTSE 100 company said the investment will help it reach its target of $80 billion in annual sales by 2030, with half of that revenue expected to come from the US, its largest market. Currently, AstraZeneca derives 42 per cent of its revenues from America.
A key component of the investment includes the construction of a new manufacturing facility in Virginia dedicated to the company’s growing portfolio of chronic disease treatments, including weight management and metabolic therapies. AstraZeneca described the project as the largest single investment in a facility in its history.
The announcement comes amid increasing political pressure from the White House, where President Donald Trump has threatened to impose tariffs on pharmaceutical imports. The administration has launched an investigation into the reliance on foreign-produced medicines under the Trade Expansion Act, citing national security concerns. Trump has warned that tariffs could be imposed as early as the end of the month, beginning at a low rate before escalating significantly if companies do not shift operations to the US.
US Commerce Secretary Howard Lutnick welcomed AstraZeneca’s commitment, stating that the investment aligns with the administration’s broader goal of ending American reliance on foreign pharmaceutical supply chains. “President Trump’s policies are focused on ending this structural weakness,” Lutnick said.
While the investment strengthens AstraZeneca’s position in the US, it also raises fresh questions about the company’s long-term commitment to the UK. Headquartered in Cambridge, AstraZeneca has declined to comment on reports that its chief executive, Sir Pascal Soriot, has privately expressed interest in relocating the company’s primary listing to the US. Although its American depositary receipts already trade in the US, a shift in listing could have significant implications for the UK stock market.
In January, AstraZeneca cancelled a planned £450 million expansion of its UK vaccine site, blaming the British government for missing a deadline to confirm funding support. At the time, the decision sparked a political row and renewed debate over the UK’s competitiveness in life sciences.
Soriot, who has led the company since 2012, warned in April that the concentration of pharmaceutical investment in the US was a signal that Europe must do more to support innovation or risk losing industry jobs to North America. In a statement released alongside Tuesday’s investment announcement, he said the new commitment “underpins our belief in America’s innovation in biopharmaceuticals.”
The company’s latest pledge builds on a $3.5 billion investment announced last November aimed at increasing its US-based supply capabilities. Analysts at JP Morgan, AstraZeneca’s joint house broker, said the expanded US footprint strategically positions the company to weather potential industry headwinds under the Trump administration, including drug pricing reforms and changes to clinical trial regulations.
JP Morgan estimated that around 80 per cent of the products AstraZeneca sells in the US are already manufactured domestically. The new investment could push that figure closer to full self-sufficiency. However, the bank does not believe that the investment makes a change in the company’s UK listing status more likely, pointing out that many large pharmaceutical firms have made similar US-focused investments without altering their market listings.
AstraZeneca’s announcement follows a broader trend among global pharmaceutical companies moving to reinforce their US operations. Swiss drugmaker Roche committed $50 billion to the US earlier this year, while Johnson & Johnson pledged $55 billion in new investment over four years. French company Sanofi has announced plans to invest at least $20 billion in the US by 2030, and Eli Lilly said in February it would build four new manufacturing sites, bringing its total US investment since 2020 to over $50 billion.
While some observers suggest that these investment plans were already in progress due to the scale and profitability of the US pharmaceutical market, the renewed urgency from the Trump administration has accelerated timelines and forced companies to make public commitments.
President Trump has accused pharmaceutical companies of profiteering and price gouging, saying in a White House address in May that the country would no longer tolerate such practices. He has proposed implementing “most favoured nation” pricing, tying drug costs in the US to the lower prices charged in other developed countries.
With the administration’s rhetoric and policies turning increasingly protectionist, AstraZeneca’s $50 billion commitment signals a significant pivot toward the US and underscores the geopolitical and economic factors reshaping the global pharmaceutical landscape. Whether Europe and the UK can respond with policies robust enough to compete remains to be seen.
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AstraZeneca to invest $50bn in US amid pressure from Trump administration