The investment will go toward manufacturing as well as research and development, Astra said in a statement. It includes $4 billion for a new facility in Virginia that will make drugs for chronic diseases, Kevin Hassett, director of the US National Economic Council, said Monday at an event in Washington, DC.
“With the completion of this investment, substantially all of AstraZeneca’s pharmaceuticals sold in the United States will be produced in the United States,” Hassett said.
Astra will also manufacture its experimental weight-loss pill at the facility in Virginia, following an earlier pledge from rival Eli Lilly & Co., which is also planning to make its obesity pill in the US.
The announcement comes as European drug companies rush to highlight their US investments with the aim of mitigating the impact of tariffs from President Donald Trump. Astra already announced plans in November — a week after Trump’s election — to invest $3.5 billion in the US by the end of 2026, noting at the time that it employs nearly 18,000 people in the country.
The company said the latest investment announcement is in addition to that earlier amount.
Big Spend
Since Trump’s election, European competitors have touted ever-larger spending plans. Switzerland’s Novartis AG in April announced plans for $23 billion in US-based infrastructure spending, while cross-town rival Roche Holding AG said it would invest $50 billion. In May, French drugmaker Sanofi announced its intent to invest at least $20 billion in the US by 2030.
Pascal Soriot, who’s been chief executive officer of Astra since 2012, had urged tariff restraint from US policymakers. This spring, he recommended that US officials exempt medicines from tariffs, arguing that tax incentives are a better way to attract investment in drug development and manufacturing.
On Monday, Soriot said he understands the need for countries to have medicines manufactured domestically.
“It’s a question of national security,” he said. “This is a vision that the president and his administration have put out there, and a vision that we totally understand and totally support, and the tariffs are accelerating a movement that we would have made in any case.”
Trump has proposed various timelines for tariffs on pharmaceuticals, most recently floating duties that would start as soon as Aug. 1. The president said he expects to give companies a year to bring manufacturing to the US before imposing tariffs as high as 200%.
Meanwhile, Soriot has raised concerns in the UK about his company’s commitment to its home country. He has long complained about the UK’s regulatory environment, which he says is a threat to hold the nation back from staying competitive with the US and China. In January, Astra abandoned plans for a £450 million ($607 million) vaccine manufacturing plant in Liverpool. The company operates 17 manufacturing sites in 12 US states.
Earlier this month, British paper The Times reported that Soriot is considering moving the company’s stock listing to the US. That would be a major blow to the UK’s equity markets, which have endured similar defections from other companies in recent years.
“To a great extent, we are American, but we happen to be listed in London, and we domicile in London,” Soriot said Monday night in response to a question from Bloomberg News about whether Astra plans to move its stock listing to the US.
Under Soriot’s leadership, Astra’s market value has more than tripled as the company has become a global powerhouse in cancer medicines. It’s also built up a significant drug pipeline for other areas, including cardiovascular, renal, and metabolic diseases.
