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16 handpicked stocks

Pharma Onshoring Boom: Investment Risk Considerations

AstraZeneca is building a major new manufacturing plant in the U.S., responding to policy pressures for domestic production. This signals a broader trend of onshoring pharmaceutical manufacturing, creating opportunities for companies that build and equip these advanced facilities.

Author avatar

Han Tan | Market Analyst

Published on October 10

Your Basket's Financial Footprint

Aggregate and breakdown of market capitalisation for the 'Pharma's American Factory Boom' stock basket.

Key Takeaways for Investors:
  • Large-cap dominance generally implies lower volatility and returns that tend to track broad-market trends.
  • Suitable as a core, diversified portfolio holding rather than a short-term speculative position.
  • Expect steady, long-term value growth rather than quick explosive gains; performance tends to be more moderate.
Total Market Cap
  • AZN: $266.90B

  • J: $18.58B

  • FLR: $7.03B

  • Other

About This Group of Stocks

1

Our Expert Thinking

AstraZeneca's $4.5 billion Virginia plant investment signals a major shift towards domestic pharmaceutical manufacturing. This onshoring trend, driven by government incentives and supply chain security needs, creates sustained demand for the specialised companies that build and equip these advanced facilities.

2

What You Need to Know

This theme captures a multi-year capital expenditure cycle as pharmaceutical giants follow AstraZeneca's lead. The companies selected provide essential services like specialised construction, industrial automation, process controls, and life sciences instrumentation needed for these complex facilities.

3

Why These Stocks

These companies were handpicked as the key suppliers and builders positioned to benefit from pharmaceutical reshoring. They represent the essential infrastructure providers, from engineering firms to automation specialists, that make domestic drug production possible.

Why You'll Want to Watch These Stocks

🏭

Manufacturing Renaissance

AstraZeneca's $4.5 billion investment is just the beginning. More pharmaceutical giants are expected to follow suit, creating a sustained boom for companies that build and equip these advanced facilities.

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Policy-Driven Demand

Government incentives and supply chain security concerns are driving pharmaceutical onshoring. This creates predictable, long-term demand for the specialised companies in this group.

Multi-Year Growth Cycle

Building pharmaceutical facilities takes years and requires cutting-edge technology. These companies are positioned to benefit from a sustained capital expenditure cycle as the industry reshores production.

Get the full story on this Basket. Read our detailed article on its risks and potential.

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