U.S. market advancement threatens European jobs, cautions AstraZeneca CEO Pascal Soriot
AstraZeneca's top brass is sounding the alarm as Europe might be playing catch-up, as the pharmaceutical giantboosts its presence in the United States.
Pascal Soriot, the company's chief executive, pointed fingers at the U.S. for heavily funding innovation in the pharmaceutical industry. This conviction is clear as he pushes ahead with plans to beef up the business in the States, which already contributes a whopping 40% of the company's revenues.
Soriot urged Europe to step up its investment in pharmaceutical innovation, or risk losing jobs, both in manufacturing and R&D, to the U.S. long-term.
Trump's proposed tariffs on drug imports might be responsible for this trend. Such tariffs could increase the cost of life-saving treatments for American citizens and motivate companies like AstraZeneca to dial up production in the U.S.
Expanding its horizons: corporate exec Soriot claimed that innovation in pharmaceuticals has largely been funded by the U.S. as he doubles-down on strategies to bolster AstraZeneca's operations in America. (Image source: Business Wire)
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Waving red flags about potential tariffs, Soriot told Bloomberg TV: 'A better incentive to attract investment in manufacturing and in R&D is to have a great tax policy that incentivises companies to invest in the country.'
However, Soriot foresees a decrease in AstraZeneca's exposure to tariffs as production shifts, stating, 'By 2025, any impacts will be short-lived because of our ability to move things around.'
The company is committed to investing and growing in the U.S., with plans for more significant investments in manufacturing and R&D right around the corner.
AstraZeneca - Britain's largest corporation with a whopping £160 billion market cap - reported an impressive 10% increase in revenue for the first three months of 2025, primarily driven by strong sales from its oncology division, which shot up by 13%.
Separately, AstraZeneca is awaiting a potential fine in China, accused of underpaying import taxes, reportedly Amounting to £1.2 million. If found guilty, the company could face fines ranging between the unpaid amount and five times that sum, equating to £6 million.
Despite these complications, Soriot stayed resolute, declaring, 'We remain very committed to China – it's a crucial market for our business.'
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- AstraZeneca's CEO, Pascal Soriot, is concerned about Europe's investment in pharmaceutical innovation and believes it is falling behind the U.S., which heavily funds such research.
- Soriot is pushing ahead with plans to expand AstraZeneca's business in the United States, where it already contributes 40% of the company's revenues.
- Trump's proposed tariffs on drug imports might be encouraging companies like AstraZeneca to increase production in the U.S., potentially increasing the cost of treatments for American citizens.
- Soriot believes that a great tax policy that incentivizes companies to invest in a country is crucial for attracting investment.
- By 2025, any tariff impacts on AstraZeneca will be short-lived due to the company's ability to move production around.
- Despite potential fines in China for underpaying import taxes, AstraZeneca remains committed to that market, which is crucial for its business.
- AstraZeneca reported a 10% increase in revenue for the first three months of 2025, primarily driven by strong sales from its oncology division. The company is also planning significant investments in manufacturing and R&D in the U.S.
