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Britain’s biggest company AstraZeneca has paused a planned 200 million pound ($271.26 million) investment in its Cambridge research site, a spokesperson said, the latest drugmaker to pull back on its business in Britain.
The decision on the investment, which had been set to create 1,000 jobs, means none of AstraZeneca’s planned new funding – originally announced in March 2024 – is currently proceeding.
In January, the company scrapped plans to invest 450 million pounds in its vaccine manufacturing plant in northern England, citing a cut in British government support.
U.S. drugmaker Merck & Co this week blamed the UK’s challenging business environment as it abandoned a new research centre in London.
Asked about speculation over its pharmaceutical investments following Merck’s announcement, a spokesperson for AstraZeneca confirmed the company had paused its investment plans in Cambridge, where it has one of Britain’s leading life sciences hubs.
“We constantly reassess the investment needs of our company and can confirm our expansion in Cambridge is paused. We have no further comment to make,” the spokesperson said.
PHARMA INDUSTRY INCREASINGLY ‘RULING OUT’ UK INVESTMENT
The news will come as a blow to Prime Minister Keir Starmer’s government, days before U.S. President Donald Trump arrives in Britain for a state visit.
AstraZeneca, which has the biggest market capitalisation on the FTSE 100, in July said it would spend $50 billion to expand its U.S. manufacturing and research by 2030 – one of many such reactions to Trump’s tariff policy by drugmakers.
Trump has criticised Britain and Europe for not paying high enough prices for drugs, and several pharmaceutical firms have also criticised Britain for what they say is long-term undervaluation of medicines and innovation.
After AstraZeneca dropped its vaccine plant investment plan, Chief Executive Pascal Soriot urged Britain to improve the environment for businesses in order to drive investment.
The Association of the British Pharmaceutical Industry (ABPI) this week said Britain was “increasingly being ruled out of consideration as a viable location for pharmaceutical investment”, as talks between drugmakers and the government on how much revenue should be returned to Britain’s health service have stalled.
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Britain hopes to dodge the worse of Trump’s forthcoming pharma tariffs.
The two countries agreed in May to seek “significantly preferential treatment outcomes on pharmaceuticals”, with a commitment that Britain try to improve the overall environment for pharma firms operating in the country.
Drugmakers have encouraged foreign governments to pay more for their medicines – a direct response to Trump’s calls for lower drug prices in the U.S. and price hikes overseas.
Last month Eli Lilly and Co announced it would hike the price in the UK of its weight loss drug Mounjaro by 170%.
($1 = 0.7373 pounds)
(Reporting by Alistair Smout and Maggie Fick; Editing by Kirsten Donovan)
