BRITISH DRUGMAKER PLEDGES US$2.5 BLN INVESTMENT IN BEIJING

BEIJING, March 21 (Bernama-Xinhua) -- British pharmaceutical giant AstraZeneca signed a landmark agreement on Friday to invest US$2.5 billion in Beijing over the next five years, signalling the multinational's confidence in the world's second-largest economy, reported Xinhua.

"The investment highlights our confidence in Beijing's world-class life sciences innovation ecosystem, extensive collaborative opportunities, and exceptional talent pool," AstraZeneca CEO Pascal Soriot said in an interview with Xinhua.

The deal was inked with the Beijing Economic-Technological Development Area, commonly known as e-town, where the company's northern China headquarters is located.

It marks the largest single investment in Beijing's biopharmaceutical sector in recent years, spanning multiple stages from research and development (R&D) to manufacturing and commercialisation.

Under the agreement, AstraZeneca will establish a global strategic R&D center in Beijing, its sixth worldwide and second in China after one in Shanghai. The new centre, equipped with an advanced artificial intelligence and data science laboratory, will accelerate early-stage drug research and clinical development.

The Beijing centre will focus on technology-driven biopharmaceutical innovation, leveraging China's scientific advancements to propel the firm's global growth. "We believe China can become a core part of our R&D strategy," Soriot said.

Additionally, the pharmaceutical titan, which has been deeply rooted in China for over 30 years, will form a new joint venture with Shenzhen Kangtai Biological Products Co, Ltd. in Beijing to develop, manufacture, and commercialise innovative medicines targeting respiratory and other infectious diseases.

"China is a global leader in innovation in the biopharmaceutical industry," said Soriot, noting that the strong signals from this year's government report that reaffirm the country's commitment to science, innovation and opening up, are "highly encouraging."

"We have been investing in science and innovation for many years in China," he said. "And we plan to invest even more in the future."

Soriot highlighted the critical role of artificial intelligence (AI) in the healthcare sector, emphasising China's unique advantages in advanced technologies, a dynamic business environment, and the remarkable "China speed," which make it an attractive hub for pharmaceuticals.

"In the biopharmaceutical industry, the future lies in leveraging data to accelerate drug development," he said. "Our collaborations are primarily with academic institutions and companies that bridge AI and biology. China's talent pool in AI and its large datasets give it a competitive edge."

The mega investment marks AstraZeneca's latest effort to double down on China. In 2024, the firm inked an agreement to invest US$475 million in a small molecule drug factory in Wuxi, east China's Jiangsu Province. It also invested US$750 million in an inhalation aerosol factory in Qingdao.

"AstraZeneca's strong foundations in China, skilled R&D team, and globally recognised high-tech manufacturing capabilities, which deliver China-made medicines to over 70 countries, underline our continued commitment to China," Soriot said.

"We have no doubt China will consolidate its position as a global scientific powerhouse and make an even bigger difference for patients around the world in the coming years," he added.

--BERNAMA-XINHUA