AstraZeneca has announced its intention to invest $50 billion in the United States by the end of the decade, in response to increasing pressure from the Trump administration for global pharmaceutical companies to relocate manufacturing and research operations to the US. The FTSE 100 company aims to reach $80 billion in annual sales by 2030, with half of this revenue expected to come from the US, its largest market. Currently, 42% of AstraZeneca’s revenue is derived from America.
A cornerstone of this investment is the construction of a new manufacturing facility in Virginia, which will focus on the company’s expanding portfolio of chronic disease treatments, including weight management and metabolic therapies. AstraZeneca has described this undertaking as the largest single investment in a facility in its history.
The announcement coincides with mounting political pressure from the White House, where President Donald Trump has considered imposing tariffs on pharmaceutical imports. The administration has initiated an investigation into the dependence on foreign-produced medicines under the Trade Expansion Act, citing national security concerns. President Trump has warned that tariffs could be implemented as soon as the end of the month, starting at a low rate and potentially escalating significantly if companies do not move 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 reducing 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 raises 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, citing the British government’s failure to confirm funding support on time. This decision sparked political 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 signalled that Europe must do more to support innovation or risk losing industry jobs to North America. In a statement released with 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 to enhance its US-based supply capabilities. Analysts at JP Morgan, AstraZeneca’s joint house broker, noted that the expanded US footprint strategically positions the company to withstand potential industry challenges under the Trump administration, including drug pricing reforms and changes to clinical trial regulations.
JP Morgan estimated that around 80% 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 increases the likelihood of a change in the company’s UK listing status, noting 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 strengthening 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 announced in February it would build four new manufacturing sites, bringing its total US investment since 2020 to over $50 billion.
While some observers suggest 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 compelled companies to make public commitments.
President Trump has accused pharmaceutical companies of profiteering and price gouging, stating 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 becoming increasingly protectionist, AstraZeneca’s $50 billion commitment signifies a significant shift toward the US and highlights 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.
