The news: AstraZeneca plans to invest $50 billion in US drug manufacturing and R&D by 2030. The company is building a multi-billion-dollar drug manufacturing facility in Virginia as part of the commitment, its largest for a single site. The facility will support AstraZeneca’s development of weight loss drugs, including an oral GLP-1.

Driving the news: Leading drugmakers have been making pledges to build and expand their US manufacturing sites in response to President Trump’s threat of tariffs on pharma imports. Biogen also said this week it will invest an extra $2 billion in its existing manufacturing footprint in North Carolina.

Trump recently said during a cabinet meeting that a 200% tariff rate is coming to the drug industry—likely announced within the next few weeks—while noting that it wouldn’t kick in for 12 to 18 months. The delay gives pharma companies more time to continue bringing medicines from abroad before the levy hits, while also reducing their exposure down the road. AstraZeneca stated its goal of having half its revenue generated in the US by the end of the decade, for example.

The big takeaway: Pouring billions into US builds isn’t an option for most generic drugmakers that operate on thin margins.

• Manufacturers retain around two-thirds of net spending on small molecule branded drugs, but much less (between 34%-39%) on small molecule generics due to pharma supply chain dynamics, per research published in the National Library of Medicine.

For context: Just 12% of the active pharmaceutical ingredients (APIs) used for generics come from the US, despite generic drugs accounting for some 90% of US prescription volume. This could result in shortages since companies that make generics may have to choose between exiting the market once tariffs take effect and raising prices when possible. Other players in this space might find it most beneficial to wait it out and see if Trump changes course yet again on tariff policy.

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