AstraZeneca is pouring $136 million more into the expansion of an inhalants production base in China.
The latest investment brings the British pharma’s total investment at the site in Qingdao to $886 million. AstraZeneca unveiled (Chinese) the outlay Wednesday at the China International Import Expo (CIIE), an annual event where foreign companies parade their commitments to the country.
The announcement also follows days of drug pricing negotiations between manufacturers and the Chinese government to hash out coverage under China’s national insurance scheme. AZ’s injectable biologic drug for asthma, Fasenra, along with cancer therapies Truqap and Calquence, are among those vying for a spot on China's National Reimbursement Drug List.
Last year, AZ’s partner Daiichi Sankyo made a $152 million commitment to build an antibody-drug conjugate (ADC) manufacturing facility in Shanghai, just as the two firms’ HER2-directed ADC Enhertu was added to national coverage.
AZ first unveiled its plan to build the Qingdao facility in 2022, with a $450 million investment deal signed with the local government the following March. At that time, the project was billed as a capacity expansion for AZ’s chronic obstructive pulmonary disease (COPD) inhaler Breztri Aerosphere.
The British pharma has since repeatedly amped up investments in the site, first with $250 million in August 2023 to increase filling capacity and add new packaging lines, followed by another $50 million last August. By then, the facility was said to have the capacity to make 54 million doses of respiratory medications annually, with AZ predicting the site would come online in 2028.
The latest funds will further beef up the site’s production capacity of inhaled aerosols to meet the needs of patients with respiratory diseases such as asthma and COPD, AZ said in a Nov. 5 release.
In parallel, AZ has been executing a $475 million plan to build a small-molecule factory in Wuxi, China—a project that was first unveiled at the 2023 CIIE event.
Entering this year, AZ in March outlined a global R&D center in Beijing as part of a $2.5 billion investment in the city. The total amount also covers partnerships with local biotechs, a manufacturing plant in China’s capital, and additional hires. The Beijing R&D center, which is AZ’s sixth globally, is now operational, the company said on Oct. 25.
The R&D move came as Chinese authorities launched a probe into illegal drug importation at AZ’s local operations. Several AZ employees, including then China head Leon Wang, were implicated in the investigation. AZ has since shuffled its Chinese organization, installing Iskra Reic, Ph.D., as the new EVP of international overseeing the Chinese business, among other markets.
“AstraZeneca remains committed to deepening its presence in China and working hand in hand with partners to help China become a key hub for global healthcare innovation,” Reic said in a Chinese statement on the new investment. “The expansion of our Qingdao facility announced at the CIIE reflects our confidence in China’s innovation ecosystem and our vision to work together to promote scientific progress for the common health.”
AZ has emerged from the importation scandal largely unscathed. In February, the company said it could face a fine of up to $4.5 million over illegal imports of cancer drugs Imfinzi and Imjudo. Then, in April, AZ said penalties related to illegal imports of Enhertu could reach $8 million.
In the first half of the year, AZ reported 5% revenue growth in China at constant currencies, reaching $3.5 billion for the period, thanks in part to strong performance from Breztri. The company will report third-quarter earnings Thursday.