AstraZeneca breaks ground on potentially $4.5B Virginia plant, adding ADC capacity as tariff fight simmers

AstraZeneca broke ground today on a massive manufacturing complex near Charlottesville, Virginia, which stands to be its largest facility worldwide and a pillar of the company’s $50 billion U.S. R&D and manufacturing plan through 2030. The company intends to ramp up investment and scope of the facility to $4.5 billion, which would eventually create 3,600 new jobs as the site expands.

In the near term, project is expected to create 600 highly skilled jobs and roughly 3,000 construction roles, with first production targeted in four to five years. The company says the site will lean on AI, automation and data analytics across operations, according to a press release.

The Virginia build spans two capabilities: drug-substance production for AstraZeneca’s weight-management and metabolic portfolio, including oral GLP-1, baxdrostat, oral PCSK9 and small-molecule combos, and a new antibody-drug conjugate (ADC) manufacturing facility for oncology. The company identified the location as the Rivanna Futures site in Albemarle County.

On September 25, the White House threatened 100% tariffs on imported branded/patented drugs absent U.S. manufacturing under construction, explicitly defining “is building” as “breaking ground” or “under construction.” The policy’s start date (October 1) has since been delayed while the administration negotiates company-by-company arrangements; Pfizer already secured a three-year exemption tied to Medicaid pricing concessions and other commitments. CMS Administrator Dr. Mehmet Oz attended today’s event.

For pharma companies, pipelines and exclusivity still matter, of course, but now manufacturing is a moat: a domestic footprint can blunt tariff risk, improve supply-chain sovereignty and potentially earn pricing latitude in negotiated deals. That dynamic is emerging just as early-stage biotechs face a chilly funding tape: Q2 first financings fell sharply and overall biopharma VC dollars slumped to multi-year lows, even as AI soaks up venture share.

Row of dignitaries seated and clapping at outdoor groundbreaking.

In terms of the Virginia  angle,  the state highlighted workforce and site-readiness programs, noting the project could tap an MEI special appropriation up to $191.3 million (subject to General Assembly approval) and follows a $9.7 million Business Ready Sites grant for Rivanna Futures. The governor’s office also reiterated the target 600 direct jobs (engineers, scientists, process facilitators).

If the White House does decide to pursue the 100% tariffs on pharma firms that are not building factories, AstraZeneca’s timing would put it firmly in the “is building” category.