AstraZeneca to invest $2.5 billion in new global strategic R&D center in China

UK pharma major AstraZeneca (LSE: AZN) today announced an investment of $2.5 billion in Beijing to establish its sixth global strategic R&D center, as well as major research and manufacturing agreements with local companies that will further advance life sciences in China.

The company pointed out that this investment over the next five years is part of a strategic partnership with the Beijing Municipal Government and the Beijing Economic-Technological Development Area Administrative Office and includes agreements with three biotechs; Harbour BioMed, Syneron Bio, and BioKangtai. It also follows the recent FibroGen (Nasdaq: FGEN) announcement regarding the acquisition of the latter’s China subsidiary for around $160 million. AstraZeneca expects its Beijing workforce to grow to 1,700 employees.

The announcement comes amid AstraZeneca's continued expansion in China despite ongoing investigations into its executives and activities there. As one of the largest foreign pharma investors in the country, AstraZeneca derived roughly 12% of its revenue from China last year.