AstraZeneca PLC (ST:AZN) said on Monday that it will invest $50 billion to build out more research and manufacturing facilities in the U.S. by 2030, as the pharmaceutical sector faces steep trade tariffs under President Donald Trump.
A bulk of the investment will fund a new manufacturing facility in Virginia, the company’s largest single manufacturing investment, and will also build research and manufacturing facilities in Massachusetts, California, Maryland, Indiana, and Texas, Astrazeneca (LON:AZN) said in a statement.
The investments are aimed at helping reach AstraZeneca’s goal of $80 billion in total revenue by 2023. The company makes at least 40% of its revenue in the U.S., and had outlined expansion plans in the country even before Trump’s tariff threat.
Trump recently threatened to impose 200% tariffs on all pharmaceutical imports to the U.S.-- a move that could greatly impact Astrazeneca and its peers, who manufacture a bulk of their drugs outside the United States.
This drew a host of commitments by major pharma firms to invest more in the country. Earlier this year, Swiss pharma firm Roche Holding AG (SIX:RO) had committed $50 billion to the U.S., while Eli Lilly and Company (NYSE:LLY), Novartis AG (SIX:NOVN), Sanofi ADR (NASDAQ:SNY), and Johnson & Johnson (NYSE:JNJ) also committed billions of dollars.
