AstraZeneca to spend $2 billion on expanding Maryland biologics operations

AstraZeneca, the Cambridge, U.K.-based pharmaceutical giant, announced new plans November 21 to spend $2 billion on an expansion for its flagship factory in Frederick and construction of a new one in Gaithersburg, both for developing and manufacturing medicinal molecules for clinical trials. The announcement follows a late-October announcement that vaccine maker Novavax would sell AstraZeneca its Gaithersburg headquarters for $60 million. The moves announced today, AstraZeneca said, would create about 300 jobs in the area.

According to AstraZeneca, its Frederick plant currently produces biologics used in AstraZeneca’s medicines for cancer, autoimmune, respiratory and other conditions. The planned expansions there will increase capacity and create about 200 jobs. The new clinical manufacturing site AstraZeneca says it will build in Gaithersburg is expected to be operational by 2029 and create 100 more jobs.

The money will expand AstraZeneca’s footing in Gaithersburg, which previously expanded earlier this month after Novavax sold its headquarters and equipment for $60 million. In an October 22 statement, Novavax CEO John C. Jacobs said the company was consolidating its operations and focusing on R&D. The vaccine maker remains headquartered in Gaithersburg: According to local news source WRAL, Novavax has moved to a new, smaller headquarters down the road.

What people are saying

“Today marks a landmark moment for Maryland and American patients,” said AstraZeneca CEO Pascal Soiroit. “As the state’s largest biopharmaceutical employer, we are deepening our long-standing commitment to Maryland – supporting 2,600 jobs, catalyzing economic growth and bringing our extensive rare disease portfolio onshore for the first time. This investment strengthens the resilience of the US medicines supply chain and accelerates access to transformative therapies for patients across America and around the world.”

“AstraZeneca's commitment to Maryland speaks to our unique, world-class biotech ecosystem,” said Maryland Gov. Wes Moore. “This landmark investment affirms our reputation as a global leader in life sciences, while strengthening the U.S. medicine supply chain, accelerating the development of life-saving therapies, and creating hundreds of jobs. We are proud to partner with AstraZeneca to grow our economy and build new pathways to work, wages, and wealth for all.”

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