AstraZeneca to invest $405 million in Britain after US-UK pharma deal
Major Investment Announced Following US-UK Pharmaceutical Agreement
Background of the Investment
LONDON, April 29 (Reuters) - Prime Minister Keir Starmer said on Wednesday that Britain's biggest company AstraZeneca would invest 300 million pounds ($405 million) in the country, after pausing large-scale projects last year.
The investment follows praise from drugmakers including AstraZeneca for a U.S.-UK agreement aimed at increasing medicine prices in Britain in line with the Trump administration's new U.S. pricing policies. The deal was finalised earlier in April.
Official Announcement
"I can announce a significant new investment by AstraZeneca, investing 300 million pounds in UK life sciences, made possible by the pharmaceutical arrangement we have struck with the United States," Starmer told lawmakers in parliament.
Industry Reactions and Implications
Concerns Over European Market
Companies including AstraZeneca have warned that Europe risks missing out on new medicines under the new policy environment, known as most-favored-nation pricing.
Statements from AstraZeneca Leadership
"We want to recognize the importance of the U.S.-UK deal on pharmaceuticals, and the leading role this plays in ensuring increased spending on new medicines and driving access to new therapies," AstraZeneca CEO Pascal Soriot said on a call with reporters shortly after Starmer's announcement.
Recent Company Performance
AstraZeneca earlier on Wednesday reported earnings that beat expectations, helped by demand for its cancer and rare disease drugs.
Details of the Investment
Project Plans
The investment will be used to complete the Rosalind Franklin building on AstraZeneca's campus in Cambridge, eastern England, and to develop a lab of the future that will use digital and data tools to advance drug development.
Starmer said the investment would future-proof 1,000 jobs in Cambridge and Macclesfield, northern England.
Previous Withdrawals
Last year, AstraZeneca pulled back on a 200-million-pound investment plan in Cambridge, home to one of Britain's leading life sciences hubs. It also scrapped plans for a 450-million-pound vaccine manufacturing plant in northern England after government support was cut.
Additional Information
($1 = 0.7405 pounds)
(Reporting by Sam Tobin and Sam Tabahriti and Bhanvi Satija in London. Editing by Muvija M and Mark Potter)
