Outside the Macclesfield factory of AstraZeneca.
Christopher Furlong | Getty Images News | Getty Images
British pharmaceutical giant AstraZeneca on Friday said that it will invest $2.5 billion in a research and development center in Chinese capital Beijing.
The new hub is expected to take AstraZeneca’s Beijing workforce to around 1,700 employees.
The investment in Beijing comes as part of a partnership with the city’s Municipal Government and the Beijing Economic-Technological Development Area Administrative Office, AstraZeneca said.
Under the deal, AstraZeneca will enter research and development collaborations with biotech firms Harbour BioMed and Syneron Bio and will launch a joint venture with BioKangtai to develop, produce, and market vaccines for respiratory and other infectious diseases.
The center “will partner with the cutting-edge biology and AI science in Beijing and be a critical part of our global efforts to bring innovative medicines to patients worldwide,” CEO Pascal Soriot said in a statement.
Last month, AstraZeneca said it could face a fine from Chinese authorities of up to $4.5 million, in relation to unpaid import duties, according to Reuters.
Shares of AstraZeneca were down by around 1% at 11:13 a.m. in London.
Don’t miss AstraZeneca’s CEO Pascal Soriot interview live on CNBC International between 11:30 a.m. London time and 12:00 p.m. London time / 7:30-8 a.m. ET.
This breaking news story is being updated.