AstraZeneca Boosts U.S. Investment Amid Strong Drug Demand

AstraZeneca has raised its annual sales and profit forecast due to strong demand for cancer and rare disease medicines. It plans a $2 billion U.S. expansion investment focused on research, manufacturing, and creating high-skilled jobs. Concerns persist over its operations in China following local investigations.

The pharmaceutical giant AstraZeneca has once again increased its annual sales and profit outlook, buoyed by an uptick in demand for its oncology and rare disease medications. This announcement follows the company's third-quarter financial results, which surpassed market expectations and led to plans for a robust expansion in the United States.

AstraZeneca revealed plans to inject an additional $2 billion into its U.S. operations, aiming to boost research and establish advanced manufacturing facilities in Maryland, Texas, and California. This expansion is expected to generate 1,000 skilled jobs by 2026. CEO Pascal Soriot emphasized the U.S. business environment and talent pool as key factors for their investment strategy.

Despite success in the U.S., AstraZeneca faces challenges in China. Their regional president, Leon Wang, was detained, heightening market worries. Although the Chinese market has significantly contributed to AstraZeneca's revenue, ongoing investigations pose a potential threat. In a positive development, the company seeks approval for a new lung cancer drug in the U.S., potentially bolstering its product portfolio in the near future.

(With inputs from agencies.)