(newsrealtime) -- AstraZeneca Plc plans to invest $50 billion in the US before 2030, increasing spending along with other European drugmakers ahead of potential tariffs on imported medicines.
The investment will go toward manufacturing as well as research and development, Astra said in a statement. It includes $4 billion for a new facility in Virginia that will make drugs for chronic diseases, Kevin Hassett, director of the US National Economic Council, said Monday at an event in Washington, DC.
"With the completion of this investment, substantially all of AstraZeneca's pharmaceuticals sold in the United States will be produced in the United States," Hassett said.
With many drugmakers pledging to invest in the US to placate the Trump administration, there is uncertainty around how many commitments are truly new. Astra said the Virginia investment will come on top of $3.5 billion worth of initiatives announced in November.
The shares were little changed in London trading, leaving this year's decline around 2.5%.
Astra will manufacture its experimental weight-loss pill at the facility in Virginia, following an earlier pledge from rival Eli Lilly & Co., which is also planning to produce its obesity pill in the US.
The announcement comes as European drugmakers rush to highlight their US investments in an effort to mitigate the impact of tariffs from President Donald Trump. Astra's previous announcement in November came a week after Trump's election.
Big Spend
Switzerland's Novartis AG in April announced plans for $23 billion in US-based infrastructure spending, while cross-town rival Roche Holding AG said it would invest $50 billion . In May, French drugmaker Sanofi announced intent to invest at least $20 billion in the US by 2030.
Pascal Soriot, who has been chief executive officer of Astra since 2012, has urged tariff restraint from US policymakers. This spring, he recommended that US officials exempt medicines from tariffs, arguing that tax incentives are a better way to attract investment in drug development and manufacturing.
On Monday, Soriot said he understands the need for countries to have medicines manufactured domestically.
It's a question of national security," he said. "This is a vision that the president and his administration have put forward, and a vision that we totally understand, totally support, and the tariffs are accelerating a movement that we would have made anyway.
Trump has proposed various timelines for tariffs on pharmaceuticals, most recently floating Duties that would start as soon as August 1. The president said he expects to give companies a year to bring manufacturing to the US before imposing tariffs as high as 200%.
Meanwhile, Soriot has raised concerns in the UK about his company's commitment to its home country. He has long complained about the regulatory environment, which he says is a threat to hold the nation back from staying competitive with the US and China. In January, Astra abandoned plans for a £450 million ($607 million) vaccine manufacturing plant in Liverpool.
Earlier this month, British paper the Times reported That Soriot is considering moving the company's stock listing to the US. That would be a major blow to the UK's equity markets, which have endured similar defections from other companies in recent years.
"To a great extent, we are American, but we happen to be listed in London and we domicile in London," Soriot said at the event in response to a newsrealtime question about whether Astra plans to move its stock listing to the US.
Under Soriot's leadership, Astra's market value has more than tripled as the company has become a global powerhouse in cancer medicines. It has also built up a significant drug pipeline for other areas, including cardiovascular, renal and metabolic diseases.
--With assistance from Madison Muller.
(Updates with Virginia investment details in the fourth paragraph.)
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