By Helena Smolak
AstraZeneca plans to invest $2.5 billion in China over five years to build a research-and-development center and strike deals with local biotechnology companies, at a time Chinese authorities are probing the U.K. drugmaker.
The U.K. pharmaceutical giant said Friday that it will build a new research center in Beijing, its sixth globally, that will focus on early-stage research and clinical development and include an artificial intelligence and data science laboratory.
AstraZeneca relies more on China than most of its peers. The company generated nearly 12% of its revenue last year in the country, an exposure that came under investors' scrutiny after Chinese authorities probed allegations of medical-insurance fraud and illegal drug imports by some current and former employees.
The company said alongside its full-year results last month that it could face a fine of up to $4.5 million if found liable. The probes weighed on AstraZeneca's stock initially, but shares have since rebounded as analysts expect the investigations to have a minimal impact on the company's result.
The $2.5 billion investment reflects AstraZeneca's continued commitment to China, Chief Executive Pascal Soriot said. The R&D facility will be the company's second in China, coming after its research center in Shanghai, and add to two more in Europe and two in the U.S.
AstraZeneca anticipates its Beijing workforce to grow to 1,700 employees, up from 1,100 currently.
The investment includes research agreements with Chinese biotech companies Harbour BioMed to identify multi-specific antibodies and Syneron Bio to develop macro-cyclic peptides. AstraZeneca said it entered into a joint venture with BioKangtai to develop, manufacture and commercialize respiratory and infectious diseases vaccines.
AstraZeneca said it reached 12 licensing agreements valued at more than $9.7 billion in total in China in recent years.
Write to Helena Smolak at helena.smolak@wsj.com
(END) Dow Jones Newswires
March 21, 2025 09:14 ET (13:14 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.