AstraZeneca’s US investment distracts from Chinese worries
12 November 2024
- While not everything appears rosy in one of AstraZeneca’s (LSE: AZN) major markets, the company has announced a huge investment in another.
- The Anglo-Swedish drugmaker has suffered in the stock market on the back of news that its China business president Leon Wang had been detained by Chinese authorities amid a reported fraud probe.
- AstraZeneca has invested heavily in China, making the investigations into its business there a concern, but its largest market remains the USA, where the company announced $3.5 billion of capital investment on Tuesday, in the wake of Donald Trump’s win in the Presidential election the prior week.
- The funds will be used to expand the company’s research and manufacturing footprint by the end of 2026. This includes $2 billion of new investment, creating more than a thousand new, high-skilled jobs contributing to the growth of the US economy.
- AstraZeneca’s expanded footprint in the USA will include an R&D center in Kendall Square, Cambridge, Massachusetts, a manufacturing facility for biologics in Maryland, cell therapy production capacity on the west and east coasts and specialty manufacturing in Texas.
- Sir Pascal Soriot, chief executive of AstraZeneca, said: “Our multibillion investment reflects the attractiveness of the business environment together with the quality of talent and innovation capabilities here in the USA.
- “By expanding our R&D and manufacturing footprint, we aim to enhance the development of cutting-edge therapies and support the US leadership in healthcare innovation.”
- These US investments are the first of a series of steps to help deliver AstraZeneca’s ambition to achieve $80 billion in total revenue by 2030, as set out in May this year.
- A key element of the strategy is accelerating the company’s development in the USA, which currently generates 44% of its total revenue.
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