AstraZeneca to Invest $2bn in Maryland Manufacturing, Boosting U.S. Supply Chain

AstraZeneca (LON: AZN) is set to bolster its U.S. manufacturing capabilities with a $2 billion investment in Maryland, a move projected to support 2,600 jobs and stimulate economic growth in the region.

This marks the fourth major U.S. manufacturing investment announced by the pharmaceutical giant this year, further solidifying its commitment to a previously announced $50 billion investment in medicines manufacturing and research and development.

The investment will be split between AstraZeneca's existing biologics manufacturing facility in Frederick and a new, state-of-the-art facility in Gaithersburg.

The Frederick expansion aims to nearly double commercial manufacturing capacity, enabling increased supply of existing medicines and, crucially, bringing production of the company's rare disease portfolio onshore for the first time.

The Gaithersburg facility will focus on the development and clinical supply of innovative molecules for use in clinical trials.

The Frederick expansion is slated to create 200 highly skilled jobs and 900 construction roles, with operations expected to commence in 2029.

Simultaneously, the company said the Gaithersburg facility will add 100 new jobs, retain 400 existing roles, and support a further 1,000 construction-related jobs. Both facilities will incorporate cutting-edge AI, automation, and data analytics, adhering to the highest environmental standards.

Maryland Governor Wes Moore emphasized the significance of AstraZeneca's commitment, stating, “AstraZeneca's commitment to Maryland speaks to our unique, world-class biotech ecosystem. This landmark investment affirms our reputation as a global leader in life sciences, while strengthening the U.S. medicine supply chain, accelerating the development of life-saving therapies, and creating hundreds of jobs.”

Pascal Soriot, Chief Executive Officer of AstraZeneca, highlighted the strategic importance of the investment: “Today marks a landmark moment for Maryland and American patients. As the state's largest biopharmaceutical employer, we are deepening our long-standing commitment to Maryland – supporting 2,600 jobs, catalysing economic growth and bringing our extensive rare disease portfolio onshore for the first time.

“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.”

This announcement builds upon AstraZeneca's series of U.S. commitments made over the past six months. These include a new cell therapy manufacturing facility in Rockville, Maryland, a new drug substance manufacturing facility in Virginia, and the expansion of an existing manufacturing facility in Coppell, Texas.

The U.S. is home to 19 of AstraZeneca's R&D, manufacturing, and commercial sites. The company's U.S. workforce exceeds 25,000 people and supports over 100,000 jobs across the country. In 2023, AstraZeneca contributed approximately $20 billion in value to the American economy.