U.K. – AstraZeneca (AZ) has announced a transformative $3.5 billion investment in the United States to expand its research, development, and manufacturing capabilities.
The move is part of the company’s strategy to bolster its innovative pipeline and strengthen its presence in its largest market, which accounts for 44% of its global revenue.
The investment, expected to be completed by 2026, includes the establishment of a state-of-the-art R&D center in Kendall Square, Cambridge, Massachusetts, and a biologics manufacturing facility in Maryland.
AstraZeneca will also enhance its cell therapy manufacturing capacities on both the East and West Coasts and expand specialty manufacturing in Texas.
Of the US $3.5 billion, US $2 billion will be allocated to creating over 1,000 highly skilled jobs, underscoring the company’s commitment to supporting innovation and economic growth in the U.S.
Eyeing US $80 billion revenue goal by 2030
AstraZeneca’s CEO, Pascal Soriot, emphasized the importance of the U.S. market in driving the company’s long-term growth:
“Our multibillion-dollar investment reflects the attractiveness of the business environment together with the quality of talent and innovation capabilities here in the U.S. By expanding our R&D and manufacturing footprint, we aim to enhance the development of cutting-edge therapies and support the U.S. leadership in healthcare innovation.”
This expansion aligns with the company’s ambitious goal of achieving US $80 billion in total revenue by 2030, a significant leap from its US $45.8 billion revenue in 2023.
Strategic drivers of growth
AstraZeneca’s growth strategy is anchored in its robust portfolio of oncology, biopharmaceuticals, and rare disease treatments.
By 2030, the company aims to launch 20 new medicines, many of which are projected to generate over US $5 billion in peak annual sales.
Soriot reflected on the company’s recent milestones: “In 2023, we delivered the ambitious $45 billion revenue goal set a decade ago. With the exciting growth of our innovative pipeline, which has the potential to transform millions of lives, we are now aiming for $80 billion by 2030.”
Global investments in innovation
This U.S. investment is part of AstraZeneca’s broader global expansion strategy. Earlier this year, the company announced several key initiatives:
As AstraZeneca deepens its U.S. footprint, it faces a complex policy landscape.
While the Biden administration’s Inflation Reduction Act has introduced measures to lower drug prices, AstraZeneca’s significant investment may position the company to benefit from potential revisions to the policy, supporting its growth in the competitive pharmaceutical market.
