- White House has threatened drugs industry with import tariffs of up to 200%
- AstraZeneca boss Pascal Soriot is said to be considering moving HQ to US
AstraZeneca plans to plough billions of pounds into US manufacturing as the drugs giant faces the threat of looming tariffs.
There are also reports the FTSE 100 pharmaceuticals giant plans to abandon London as its home.
AstraZeneca on Tuesday said it would invest $50billion (£37.1billion) in the US by 2030, creating ‘tens of thousands’ of highly skilled ‘direct and indirect’ jobs, while ‘powering growth and delivering next generation medicines’.
Boss Pascal Soriot told investors in April the drugmaker is ‘firmly committed to investing and growing in the US’ as the White House continues to threaten the sector with looming tariffs on US imports.
President Donald Trump last week outlined a plan to introduce levies that would steadily climb higher over time with the potential to hit 200 per cent after a ‘year, year and a half’.
Trump said: ‘We’re going to start off with a low tariff and then give the pharmaceutical companies a year or so to build and then we’re going to make it a very high tariff.
‘There’s two ways you do it. You make money and/or you have them move here so they don’t have to pay the tariff.’
AstraZeneca boss Pascal Soriot told investors in April the drugmaker is ‘firmly committed to investing and growing in the US’
Howard Lutnick, US Secretary of Commerce, said on Thursday: ‘For decades Americans have been reliant on foreign supply of key pharmaceutical products. President Trump and our nation’s new tariff policies are focused on ending this structural weakness.’
It also comes amid reports Soriot is weighing moving AstraZeneca’s headquarters away from the UK as well as its main stock market listing.
Soriot, 66, has lambasted the UK and the rest of Europe for falling behind other countries such as the US and China in developing medicines.
AstraZeneca is planning its ‘largest single manufacturing investment in the world’ in the state of Virginia, with the site earmarked to produce drug substances for its weight management and metabolic portfolio.
‘The facility will leverage AI, automation, and data analytics to optimise production,’ AstraZeneca said.
The rest of the investment will boost AstraZeneca’s existing R&D and manufacturing facilities among other plans.
AstraZeneca said the investments will help deliver its target of reaching $80billion in total revenue by 2030, of which it expects 50 per cent would be generated in the US.
Soriot said: ‘Today’s announcement underpins our belief in America’s innovation in biopharmaceuticals and our commitment to the millions of patients who need our medicines in America and globally.’
UK government ‘will be kicking itself’
AstraZeneca’s decision will come as a blow to the Labour government as it struggles to encourage firm’s to invest in the UK.
Russ Mould, investment director at AJ Bell, said the government ‘will be kicking itself’, with the country set to miss out on associated economic benefits of the investment.
He added: ‘That money, if invested in the UK, would have created a large number of jobs and help shine a light on the country for scientific excellence.
‘AstraZeneca pulling out of a £450 million vaccine plant expansion in Liverpool earlier this year was the big clue that it was losing patience with the UK government.
‘At the time, it hinted that without a certain level of support, it wasn’t financially viable to invest that money. The previous government had pledged £90 million in grants and other aid, but the support was cut when Labour came to power.
‘The more business it does in…[the US], the greater the likelihood that investors might push for AstraZeneca to switch its main stock listing to the US. That would be bad for the UK stock market as it is one of the biggest names in the FTSE 100.’
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This article was originally published by a www.dailymail.co.uk . Read the Original article here. .