U.S. supremacy threat looms for European pharmaceutical companies, warns AstraZeneca CEO Pascal Soriot, cautioning potential job losses if they fail to match American industry advancements.
AstraZeneca's bigwig, Pascal Soriot, has issued a wake-up call to Europe, as the pharma giant steps up investments in the States. Soriot noted that innovation in pharmaceuticals largely comes from the U.S., emphasizing the need for Europe to bolster its contribution.
With the States accounting for 40% of AstraZeneca's revenue, Soriot is urging Europe to get its act together. The pharmaceutical powerhouse is even prepared to relocate manufacturing to the U.S. to dodge potential tariffs Trump could impose on pharma imports.
Soriot boldly stated, "When you see the investment pouring into the U.S, it sends a clear message that Europe needs to contribute more to pharmaceutical innovation or risk losing jobs, whether they're manufacturing or R&D jobs, to the U.S over time."
Trump has been vocal about imposing tariffs on drug imports, which could hike up the cost of life-saving treatments for Americans while driving companies like AstraZeneca to boost production in the U.S.
In an interview with Bloomberg TV, Soriot pointed out, "A better incentive to attract investment in manufacturing and R&D is a great tax policy that encourages companies to invest in the country."
Despite the potential tariff threat, AstraZeneca—worth a whopping £160 billion and the UK's largest company —reported a 10% increase in revenue during the initial three months of 2025. The surge followed strong sales in cancer drugs, with the oncology division recording a 13% surge in business.
AstraZeneca faces potential fines in China over unpaid import taxes, with authorities in Shenzhen claiming £1.2 million in unpaid taxes. If found guilty, the fine could reach up to £6 million. Despite this, Soriot remains committed to China, emphasizing its importance as a market for the company.
Investing in the U.S. is an essential part of AstraZeneca's overall strategy, with plans to invest $3.5 billion in the country by 2026. This investment aims to leverage existing R&D sites and enhance global manufacturing footprint, including eleven U.S. production sites.
So, while tariffs might influence strategic decisions, AstraZeneca's investment in the U.S. is part of a broader plan to strengthen its market presence and achieve future revenue goals.
- AstraZeneca's CEO, Pascal Soriot, has urged Europe to bolster its pharmaceutical innovation contributions, as the company increases its investing in the United States.
- Soriot has warned that Europe may risk losing jobs to the U.S due to the U.S's larger innovation contribution in pharmaceuticals.
- The potential for Trump-imposed tariffs on pharma imports could drive AstraZeneca to relocate manufacturing to the U.S.
- Soriot highlighted a better tax policy as an incentive for attracting investment in manufacturing and R&D.
- Despite potential fines in China over unpaid taxes, AstraZeneca plans to invest $3.5 billion in the U.S by 2026, with the investment aimed at strengthening market presence and achieving future revenue goals.
- AstraZeneca reported a 10% increase in revenue during the initial three months of 2025, with strong sales in cancer drugs contributing to the surge.
