AstraZeneca to invest $50 billion in the United States under pressure from the Trump administration
Astrazeneca has announced plans to invest $50 billion in the U.S. by the end of the decade to cope with increasing pressure from the Trump administration on global pharmaceutical companies to shift manufacturing and research operations to U.S. soil.
FTSE 100 said the investment will help it earn $80 billion in annual sales by 2030, with half of its expected revenue coming from the largest U.S. market. Currently, AstraZeneca receives 42% of its revenue from the U.S.
A key component of the investment is the construction of a new manufacturing facility in Virginia, a facility dedicated to the company’s growing portfolio of chronic disease treatments, including weight management and metabolic therapies. Astrazeneca describes the project as the largest single investment in its history.
The news comes amid rising political pressure from the White House, with President Donald Trump threatening to impose tariffs on drug imports. The government has begun investigating dependence on foreign-produced drugs on national security issues, citing the reliance on Trade Expansion Act. Trump warned that tariffs could be imposed as early as the end of this month, starting at a lower rate, and could significantly upgrade if the company does not transfer its business to the U.S.
U.S. Commerce Secretary Howard Lutnick welcomed Astrazeneca’s commitment and noted that the investment, with the government’s broader goal, is to end the U.S. reliance on foreign medicine supply chains. “President Trump’s policy focus is to end this structural weakness,” Lutnik said.
While the investment strengthens AstraZeneca’s position in the United States, it also raises new questions about the company’s long-term commitment to the UK. AstraZeneca, headquartered in Cambridge, declined to comment on its CEO, Sir Pascal Soriot, privately expressed interest in moving the company’s main list to the United States. Although its U.S. deposit revenue is already traded in the U.S., the shift in listing could have a significant impact on the UK stock market.
In January, AstraZeneca canceled its planned £450 million expansion of its UK vaccine site, accusing the UK government of lacking a deadline to confirm funding. At the time, the decision sparked political controversy and debated Britain’s competitiveness in life sciences.
Soriot, who has led the company since 2012, warned in April that U.S. drug investment focused on the U.S. must do more to support innovation or risk losing a job in the industry. In a statement released in Tuesday’s investment announcement, he said the new commitment “supports our belief in the innovation in the U.S. in a biopharmaceutical industry.”
The company’s latest commitment is based on a $3.5 billion investment announced last November, aiming to improve its U.S.-based supply capacity. Analysts at Astrazeneca joint House broker JP Morgan said the expanded U.S. footprint strategically positioned the company’s potential industry headwinds under the Trump administration, including drug pricing reforms and changes in clinical trial regulations.
JP Morgan estimates that about 80% of the products sold by AstraZeneca in the United States are already produced domestically. New investments could bring this number closer to total self-sufficiency. However, the bank does not see the investment as a greater possibility that it would change the company’s UK listing status, noting that many large pharmaceutical companies have made similar U.S.-centric investments without changing their market listing.
Astrazeneca’s announcement is a broader trend in promoting its U.S. operations in pharmaceutical companies worldwide (global pharmaceutical companies). Swiss drug maker Roche promised $50 billion to the United States earlier this year, while Johnson & Johnson promised $55 billion in new investment in four years. French company Sanofi has announced plans to invest at least $20 billion in the U.S. by 2030, and Eli Lilly said it will build four new manufacturing sites in February, bringing its total U.S. investment since 2020 total exceeds $50 billion.
While some observers believe these investment plans are already underway due to the size and profitability of the U.S. pharmaceutical market, new urgency in the Trump administration has accelerated the timeline and forced companies to make public commitments.
President Trump accused pharmaceutical companies of saying in a White House speech in May that the country no longer tolerated the practice. He proposed implementing the “most popular country” pricing, which correlates U.S. drug costs with lower prices charged by other developed countries.
As government rhetoric and policies become more protectionist, AstraZeneca’s $50 billion commitment marks an important hub for the United States and highlights geopolitical and economic factors that reshape the global pharmaceutical landscape. Whether Europe and the UK can respond with a strong enough policy to compete remains to be seen.
