Virginia lawmakers have unanimously approved major economic development packages for two pharmaceutical manufacturing projects that will establish the state as a significant hub for advanced drug production. The Major Employer Investment Project Approval Commission (MEI) voted to adopt state incentive packages valued at more than $10 million each for AstraZeneca's proposed facility in Albemarle County and Eli Lilly's planned plant in Goochland County.
Strategic Location and Academic Partnership
AstraZeneca's multibillion-dollar advanced pharmaceutical manufacturing plant will be located in Albemarle County, strategically positioned near the University of Virginia and its future Paul and Dianne Manning Institute of Biotechnology. The Manning Institute, set to open next year in the Fontaine Research Park adjacent to Interstate 64, will be led by Mark Esser, a former AstraZeneca vice president and UVa School of Medicine alumnus.
The $350 million, 350,000-square-foot Manning Institute has been explicitly compared to North Carolina's successful Research Triangle, representing UVa's ambitious biotechnology initiative. The institute is named after Paul Manning, CEO of health care research investment firm PBM Capital and founder of Gordonsville-based PBM Products, following a historic $100 million donation from Manning and his wife Diane in January 2023.
National Security and Tariff Considerations
The pharmaceutical industry's push to expand U.S. manufacturing has intensified under the threat of steep tariffs that President Donald Trump has proposed on imported pharmaceutical products. AstraZeneca CEO Pascal Soriot, appearing with Governor Glenn Youngkin and White House National Economic Council Director Kevin Hassett at a July 21 Washington news conference, emphasized the national security implications.
"We happen to be in London, but our heart ... is in this country," Soriot stated. "What I would say is that I totally support and totally understand the need for countries like the United States to want to see products, medicines serving patients in this country, in manufacturing in this country. It's a question of national security."
Massive Investment Commitments
AstraZeneca has positioned the Virginia project as the centerpiece of a comprehensive $50 billion investment plan over the next five years. This ambitious strategy includes new and expanded operations in Maryland suburbs of Washington, a new research-and-development center in Cambridge, Massachusetts, and additional investments in California, Indiana, and Texas facilities.
Similarly, Eli Lilly announced in February a $50 billion commitment to domestic manufacturing over five years, more than doubling its previous investments. The company plans to establish four new manufacturing sites to boost U.S. medicine production, with new and expanded facilities planned for North Carolina, Indiana, and Wisconsin in addition to the proposed Virginia location.
Regional Manufacturing Corridor
The proposed AstraZeneca and Eli Lilly facilities will create major new links in an emerging pharmaceutical manufacturing corridor stretching from the Shenandoah Valley to the Richmond area. This corridor already includes Merck & Co.'s manufacturing plant in the Shenandoah Valley, which has operated for more than 75 years.
Greater Richmond has been developing as a pharmaceutical manufacturing hub through the Alliance for Better Medicine collaboration. This initiative includes Virginia Commonwealth University's Medicines for All program, which focuses on rebuilding medications with cheaper building blocks; Phlow Corp., which has established a national reserve of key drug building blocks; and Civica Inc., a nonprofit drugmaker planning to sell insulin at discounted rates.
Economic Development Strategy
Governor Youngkin has prioritized the availability of "project ready sites" and access to a large, specialized workforce as key factors in attracting these major pharmaceutical investments. "Advanced manufacturing is at the heart of Virginia's dynamic economy, so I am thrilled that AstraZeneca, one of the world's leading pharmaceutical companies, plans to make their largest global manufacturing investment here in the Commonwealth," Youngkin stated at the July announcement.
The MEI commission, composed of senior members of the General Assembly budget committees, conducted its deliberations in closed session before the unanimous vote. While specific details of the incentive packages remain confidential, both are valued at more than $10 million each, reflecting the state's commitment to establishing Virginia as a center for the fast-growing pharmaceutical manufacturing industry.
