Dive Brief:
- Biopharmaceutical maker AstraZeneca said it will invest $2 billion to expand biologics and clinical drug production at two manufacturing facilities in Maryland.
- The investment includes a “significant expansion” of AstraZeneca’s Frederick facility that would nearly double its manufacturing capacity and onshore 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 across the two Maryland locations, retain 400 roles and support 1,900 construction-related jobs.
Dive Insight:
This is AstraZeneca’s fourth major U.S. manufacturing investment this year. It comes as pharmaceutical giants move to expand their operations domestically in part to mitigate the effects of the Trump administration’s tariffs and better meet regional demand.
In July, the U.K.-based company agreed to spend $4 billion building a drug factory in Virginia as part of a broader $50 billion pledge to invest in U.S. manufacturing and research and development. In October, AstraZeneca increased its commitment for Albemarle County, Virginia, by $500 million. The company is also expanding in Texas, Indiana and California.
CEO Pascal Soriot said in a statement that Astrazeneca’s latest investment is a “landmark moment” for Maryland, where the company is the state’s largest biopharmaceuticals employer.
“This investment strengthens the resilience of the US medicines supply chain and accelerates access to transformative therapies for patients across America and around the world,” Soriot said, adding that it will also bring the company’s “extensive rare disease portfolio onshore for the first time.”
Both drug factories will be outfitted with “cutting-edge AI, automation and data analytics” and “be built to the highest environmental standards,” according to the company.
The United States is AstraZeneca’s largest market by sales, accounting for roughly 43% of the company’s revenue mix in the three months that ended Sept. 30. The company generated Q3 revenue of $15.2 billion, up 12% from a year ago.
