Astrazeneca has revealed plans to invest up to $50bn in manufacturing and R&D in the US, following the abandonment of its º£½ÇÊÓƵ expansion plans, dealing a blow to the government's industrial strategy.
The Cambridge-based pharmaceutical giant announced it will allocate this substantial sum over the next five years, including towards a new manufacturing facility in Virginia, marking its largest-ever single manufacturing investment, as reported by .
This development comes just months after the company scrapped its plans to construct a £450m manufacturing plant in Merseyside, citing insufficient government support.
The decision to channel billions in fresh investment into the US is likely to fuel speculation that the firm is considering dropping its London listing in favour of a primary listing on the New York Stock Exchange.
Astrazeneca's move could also be seen as an attempt to sidestep Donald Trump's threat of tariffs on pharmaceutical imports to the US, which is the company's largest market, contributing as much as 42 per cent of its total revenues.
Howard Lutnick, US Secretary of Commerce, commented: "For decades Americans have been reliant on foreign supply of key pharmaceutical products. President Trump and our nation'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. This historic investment is bringing tens of thousands of jobs to the US and will ensure medicine sold in our country is produced right here."
Astrazeneca chief executive Pascal Soriot added: "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."
The pharmaceutical company revealed the new Virginia site will manufacture drug substances for the firm's cutting-edge weight management and metabolic range, including oral GLP-1, a medication class utilised to treat diabetes.
The $50bn commitment will also encompass production facilities for cell therapy in Rockville, Maryland and Tarzana, California, alongside a fresh R&D centre in Cambridge, Massachusetts.
Astrazeneca currently employs over 18,000 personnel in the US.
