AstraZeneca Expands Chinese Footprint with $136M Investment in Inhalants Facility

AstraZeneca has announced a significant expansion of its manufacturing capabilities in China, with a $136 million investment in its inhalants production base in Qingdao. This latest injection of capital brings the British pharmaceutical giant's total investment at the site to $886 million, underscoring its commitment to the Chinese market and its focus on respiratory medications.

Strategic Expansion in Qingdao

The investment, unveiled at the China International Import Expo (CIIE), aims to further increase the production capacity of inhaled aerosols at the Qingdao facility. This expansion is designed to meet the growing needs of patients with respiratory diseases such as asthma and chronic obstructive pulmonary disease (COPD).

AstraZeneca's Qingdao project has seen a series of investments since its inception in 2022:

• Initial investment of $450 million announced in March 2022
• Additional $250 million in August 2023 for increased filling capacity and new packaging lines
• Further $50 million investment in August 2024
• Latest $136 million commitment announced in November 2025

The facility is projected to have an annual production capacity of 54 million doses of respiratory medications and is expected to become operational in 2028.

Broader Chinese Investments and R&D Focus

AstraZeneca's expansion in Qingdao is part of a larger strategy to strengthen its presence in China. The company has made several other significant investments in the country:

• $475 million plan to build a small-molecule factory in Wuxi
• $2.5 billion investment in Beijing, including a global R&D center
• Partnership with Daiichi Sankyo to build a $152 million antibody-drug conjugate manufacturing facility in Shanghai

The newly operational R&D center in Beijing, AstraZeneca's sixth globally, highlights the company's commitment to fostering innovation within China's healthcare ecosystem.

Navigating Challenges and Maintaining Growth

Despite facing regulatory scrutiny over illegal drug importation, AstraZeneca has maintained its growth trajectory in China. The company reported a 5% revenue growth at constant currencies in the first half of the year, reaching $3.5 billion, partly driven by the strong performance of its COPD inhaler, Breztri Aerosphere.

AstraZeneca has also undergone organizational changes in response to the importation investigation, appointing Dr. Iskra Reic as the new Executive Vice President of International, overseeing the Chinese business among other markets.

As the company prepares to release its third-quarter earnings, these strategic investments and organizational adjustments position AstraZeneca to capitalize on the growing Chinese pharmaceutical market while navigating regulatory challenges.