A strategic shift by AstraZeneca highlights how global drugmakers are balancing the pull of the U.S. market with China’s growing role in pharmaceutical innovation.
AstraZeneca will list its shares on the New York Stock Exchange on Monday, days after announcing major investment plans in China. Like other large pharmaceutical companies, the firm is working to strengthen its position in the U.S., its biggest market, while also tapping into China’s innovation ecosystem to develop new medicines.
The company recently said it will invest $15 billion in China through 2030 to expand manufacturing and research and development. The announcement came as UK Prime Minister Keir Starmer became the first UK leader to visit China in 8 years.
“These investments span the value chain, from drug discovery and clinical development to manufacturing, and bring Chinese innovation to the world,” AstraZeneca said, while pointing to several new biotech partnerships in the region.
In a separate move, the company announced a partnership with Hong Kong-listed CSPC Pharmaceuticals to strengthen its obesity drug pipeline. The deal covers 8 preclinical and early-stage programs, including a once-monthly injectable treatment. CSPC shares fell 10.2% after the announcement.
AstraZeneca will pay $1.2 billion upfront and up to $17.3 billion more if regulatory, research, and sales milestones are achieved, a company spokesperson confirmed to a news channel. The firm declined to comment further on geographic priorities.
These announcements came just before the New York listing and follow AstraZeneca’s recently declared $50 billion investment in the U.S. to offset potential pharmaceutical tariffs.
“What we can discern from this is that the US and China will be the two most important regions for the company for the foreseeable future,” said Camilla Oxhamre, portfolio manager at Rhenman & Partners, in a written statement to a news channel.
The U.S. remains AstraZeneca’s largest market, while China is its 2nd-largest. Last year, the company said it would end its American depositary shares program and shift to a New York listing while keeping listings in London and Stockholm to broaden its investor base.
HSBC analyst Rajesh Kumar said the China investments send a strong signal. “So they are, in effect, telling you very clearly that they are committed to China by this action,” he said.
Oxhamre added that China will “continue to grow in importance over time, both in terms of revenue and research.”
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