Astrazeneca injects $2bn to boost US manufacturing capabilities
FTSE 100 giant Astrazeneca plans to invest $2bn into growing its manufacturing footprint in Maryland, as part of its efforts to boost its US capabilities and presence.
The investment will support the “significant expansion” of its biologics manufacturing facility in Frederick, doubling its capacity and increasing its medicine supply, as well as the construction of a new clinical manufacturing facility in Gaithersburg.
Both projects are expected to create over 2,600 jobs, including construction roles, and use the latest AI and data technology.
The sites are anticipated to be fully operational in 2029.
Maryland Governor, Wes Moore, said the state is ready to work with Astrazeneca to “grow our economy and build new pathways to work, wages and wealth for all.”
The group’s share price rose 0.62 per cent in early morning trading to 13,906p. Shares are up 30.44 per cent this year to date.
US cash boost
The Maryland projects come as part of the group’s wider $50bn (£38m) investment into the US announced in July, viewed as an attempt to swerve Donald Trump’s threat of tariffs on pharma imports.
The Cambridge based pharma firm has since unveiled a new drug substance manufacturing facility in Virginia and the expansion of its Texas facility.
Other plans include new manufacturing sites for cell therapy in California alongside a new research and development centre in Massachusetts.
The US is Astrazeneca’s largest market by sales and has created approximately $20bn overall value to the country’s economy this year to date.
Chief exectutive Pascal Soriot, said: “This investment strengthens the resilience of US medicines supply chain and accelerates access to transformative therapies for patients across America and around the world.
UK commitment
While the group has pushed more capital into the US and stripped back on its UK spending, sparking fears it would ultimately delist from the London index, the company has expressed its commitment to the UK.
The firm laid out plans to “upgrade” its US listing in September, but confirmed it would remain listed and headquartered in Britain in September, continuing to be a tax resident.
However, the group has also pulled the plug on multiple UK projects this year, including a £200m expansion to its Cambridge research site and a £450m vaccine plant in Merseyside, in a blow to UK government plans for the sector.
Both Keir Starmer and Rachel Reeves view the sector as crucial for economic growth, and pledged to make the country attractive for innovation, but have failed to stop industry leaders slamming the UK as uncompetitive and reducing investment.
US pharmaceutical giant Merck also scrapped its planned £1bn UK expansion, deciding to no longer occupy its London Kings Cross site, despite construction set to be completed in 2027.