AstraZeneca increases U.S. investment to boost confidence in economy | Wilnesh News

A version of this article first appeared in CNBC’s Health Returns newsletter, which delivers the latest health care news directly to your inbox. Subscribe here Receive future releases.

AstraZeneca It said it would double down on investment in its U.S. operations, a move that comes a week after Donald Trump won the election.

AstraZeneca declare It plans to invest an additional $2 billion in R&D spending, bringing the company’s total capital investment in the country to $3.5 billion by the end of 2026.

The British-Swedish pharmaceutical giant expects the new investment to create more than 1,000 jobs and “contribute to U.S. economic growth,” according to a press release. The company said it currently has 17,800 U.S. employees working at 17 facilities in 12 states.

AstraZeneca said the expanded operations will include a research and development center in Cambridge, Massachusetts, manufacturing facilities in Maryland and Texas and other unspecified sites on the West and East coasts.

AstraZeneca said the investment was the first in a series of steps it would take to achieve the $80 billion revenue target it set earlier this year by 2030.

The drugmaker is now one of the first major foreign companies to announce investment plans in the United States since Trump’s victory.

Several companies also announced major investments in the United States during Trump’s first term. trump card Will try often Take credit for these investments even if it’s hard to prove ties to his administration.

But AstraZeneca declined to say explicitly whether there was a link between Trump’s re-election and its increased spending in the U.S.

In a media call following the release of the company’s earnings on Tuesday, AstraZeneca Chief Executive Pascal Soriot said the investment “demonstrates our confidence in the U.S. economy and the U.S. market in the coming years.”

Soriot also told reporters at a separate event in New York City on Tuesday that the drugmaker had been considering expanding its investment “for months.”

previous version Tuesday report The Wall Street Journal hinted that the company was motivated by other factors: A person familiar with the matter told the outlet that AstraZeneca’s new investment is in response to the election results and a bet that a second Trump administration will revise some of President Joe’s policies. some content. The current version of the report no longer mentions the IRA.

The bill, signed into law in 2022, includes provisions aimed at lowering prescription drug costs for seniors, such as allowing Medicare to negotiate drug prices with manufacturers. AstraZeneca and other drugmakers acknowledge that the IRA, particularly its health insurance price negotiations, is a headwind for their business. AstraZeneca’s diabetes treatment Farxiga joins top 10 list New prices for 2026 were determined for the drugs targeted in the first round of negotiations.

But Soriot on Tuesday pushed back against the idea that the company’s decision was based on potential changes to the IRA. At a media event, he joked that “I sometimes dream” that the IRA would be abolished, “but not to that extent.”

He also said some provisions for IRAs, such as a $2,000 cap on out-of-pocket expenses for Medicare Part D participants starting in 2025, are “a good thing.”

Soriot said the company believed the IRA “is here to stay,” adding that the decision to increase investment in the U.S. “was not” based on “specific policies for our industry.”

“There is a general belief that the economy will remain strong. If the economy is strong, that will hopefully drive investment in innovation, certainly in our industry and many other industries,” he told reporters. “We want to leverage this innovation in the U.S.”

Asked about Trump’s tariff policy, Soriot said it was “probably more relevant to other industries and certainly other companies.”

Trump threatens to slap Tariffs as high as 60% All goods imported into the United States from China. But Soriot said his tariff policy had “nothing to do” with AstraZeneca because the company does not source products for the U.S. from China.

AstraZeneca’s products commercialized in the United States are produced at its multiple plants across the country, and “we are investing in more products now,” he told reporters.

Please feel free to send Annika any tips, suggestions, story ideas and data: annikakim.constantino@nbcuni.com.

A subsidiary of venture capital firm General Catalyst has agreed to buy Summa Health is a $485 million integrated health system in Ohio. release Thursday.

First, two organizations declare The acquisition is planned for January, but terms have not previously been disclosed. Summa said on Thursday the deal would help it eliminate $850 million in existing debt, plus its current cash. The health system’s debt as of Sept. 30 was about $859 million, according to financial documents.

Summa operates across five counties in Northeast Ohio, supporting more than 1,000 inpatient beds through its network of hospitals, community health centers and multispecialty group clinics. General Catalyst laid the groundwork for the acquisition when it announced it last year new company The company, called Health Care Transformation Company (HATCo), is said to have been in operation for “decades”.

HATCo executives told CNBC this winter that purchasing a hospital was an unprecedented move in the venture capital industry, but that the fund’s goal was not to cut Summa’s costs. Instead, the company will focus on creating new revenue streams for Summa through the introduction of new technologies and care models.

“It’s not like a turnaround, it’s not like a system in trouble,” HATCo Chief Executive Dr. Marc Harrison said in an interview in January.

The company has committed $350 million in capital funding to Summa over the first five years, which will be used to invest in technology and ensure health systems have the resources they need for day-to-day workflows, according to a release Thursday. HATCo has also committed an additional $200 million over the first seven years, “aimed at strategic and transformational investments.”

HATCo will evaluate technology solutions from a range of different companies, not just those in General Catalyst’s portfolio. Harrison added that the technology companies used by HATCo in Summa will be established companies rather than early-stage startups.

As part of the acquisition, Summa will transition from a nonprofit to a for-profit organization. The health system said remaining funds after the deal closes will be used to support a new health-focused community foundation in the greater Akron area.

“We will be able to invest in and grow our team in ways that would not be possible as an independent organization,” Summa executives said in the release. “While Summa Health’s structure and model will change when we become part of HATCo, we “Our priorities will not change and our providers, staff and leadership team will transition to the new entity.”

The deal remains subject to regulatory approval. Representatives for General Catalyst and Summa did not immediately respond to requests for comment.

Click here to learn more about why HATCo acquired Summa.

Please feel free to send any tips, suggestions, story ideas and data to Ashley at ashley.capoot@nbcuni.com.