No less than AstraZeneca has made headlines for an impressive like turn in its investment strategy, opting to invest more heavily within the United States. The decision reverses a £200 million planned investment at Cambridge biomedical campus. Critics—including some political bigwigs—are questioning the move and what it means for the future of the pharmaceutical giant in Old Blighty.
Tom Keith-Roach, AstraZeneca’s UK president, reiterated that the firm planned to funnel more cash into its US business. This shift comes as the company grapples with what it describes as an “increasingly challenging place to bring forward innovation” within the UK. This decision to pause any further investment in Cambridge comes directly from the policies of former President Donald Trump. These policies pushed US corporations to do what was politically expedient and withdraw domestic investment.
AstraZeneca’s global headquarters are situated at its discovery centre on Cambridge’s biomedical campus, a hub for innovation and research. This decision does suggest a major tactical shift both as the company reconsiders its place in the newly dynamic and competitive global marketplace. The firm’s cuts to investment in Britain have led some to question its long-term commitment to the country, amid speculation that its future lies elsewhere.
These are challenging times for the UK pharmaceutical industry, not least with respect to approaches on pricing and the regulatory environment. AstraZeneca allegedly pays a third or even a quarter as much for its medicines in Britain, versus other markets. This disparity has played its part in mighty UK’s perception as a place increasingly inhospitable to the pharmaceutical pound.
Critics of AstraZeneca’s decision have voiced their concerns, with Sir Ed Davey, leader of the Liberal Democrats, stating that “there is an American attack on Britain’s pharmaceutical industry.” He attributes AstraZeneca’s reversal to Trump’s legacy. This means incentivizing replacement in the U.S. and increasing the cost of products sold overseas.
“Let’s build up all the industry in the United States and charge higher prices for your goods elsewhere in the world.” – President Trump (via Sir Ed Davey)
Keith Roach’s comments underscore an emerging sentiment now resonating across the industry. There is a palpable demand for a better milieu that will promote creative thinking in Great Britain. For example, he has said that the current landscape presents such high barriers to entry that it discourages firms from even launching or investing in new developments.
Stopping investment at Cambridge’s biomedical campus would be a big blow to AstraZeneca. This ruling could reverberate across the whole UK pharma industry. This change would significantly alter the perception of global pharmaceutical companies towards the UK. If so, it can’t be seen anymore as a leading global center for research and development.