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Dive brief:
- Biopharmaceutical maker AstraZeneca said it will invest $2 billion to expand production of biologics and clinical drugs at two manufacturing facilities in Maryland.
- The investment includes a “significant expansion” of AstraZeneca A Frederick facility that would nearly double its manufacturing capacity and land production of its rare disease products, according to a news release. Meanwhile, the company plans to build a facility in Gaithersburg focused on drugs used for clinical research.
- The facilities are expected to be fully operational by 2029. AstraZeneca said the investment will create 300 jobs at the two Maryland locations, retain 400 roles and support 1,900 construction-related jobs.
Diving knowledge:
This is AstraZeneca’s fourth major manufacturing investment this year. It comes as pharmaceutical giants they move to expand their operations domestic, in part, to mitigate the effects of the Trump administration’s tariffs and better meet regional demand.
In July, the UK-based company agreed to spend $4 billion building a drug factory in Virginia as part of a broader $50 billion pledge to invest in US manufacturing and research and development. In October, AstraZeneca increased its commitment to Albemarle County, Virginia, for 500 million dollars. The company is also expanding into Texas, Indiana and California.
Chief Executive Officer Pascal Soriot said in a statement that Astrazeneca’s latest investment is a “historic moment” for Maryland, where the company is the state’s largest employer of biopharmaceuticals.
“This investment strengthens the resilience of the U.S. drug supply chain and accelerates access to transformative therapies for patients in America and around the world,” Soriot said, adding that it will also bring the “extensive rare disease portfolio on the ground for the first time.”
The two drug factories will be equipped with “cutting-edge AI, automation and data analytics” and “will be built to the highest environmental standards,” according to the company.
The United States is AstraZeneca’s largest market by sales approximately 43% of the company’s revenue mix in the three months that ended on September 30. The company generated third-quarter revenue of $15.2 billion, up 12% from a year ago.
