AstraZeneca, the British‑Swedish pharmaceutical multinational, has warned that it may halt further investment in the UK unless the government reforms its drug‑pricing policies. Local chairman Shaun Grady cited the National Health Service’s outdated and restrictive pricing system—characterised by spending caps and high rebate rates on branded medicines—as a key factor deterring investment and making the UK a less attractive destination for global pharmaceutical expansion.
Grady argued that the UK has failed to keep pace with medicine investment over the years, and that the current commercial environment is increasingly unattractive. He noted that the cost‑effectiveness models used to approve new treatments have not been revised for 25 years, describing the situation as “pretty appalling.” In contrast, he pointed to the responsiveness of US authorities, referencing a recent £50 billion US investment announcement made just 33 days after a meeting with the governor of Virginia.
The company has already delayed or abandoned projects worth hundreds of millions of pounds, including a planned £200 million upgrade of its Cambridge research site and a £450 million vaccine‑manufacturing plant in northern England. Consequently, the entire £650 million UK investment package announced in 2024 is at risk of being shelved.
AstraZeneca, which holds the largest market capitalisation on the FTSE 100, is reassessing its UK investment plans amid reduced government support for the pharmaceutical industry. The UK government has not commented on the issue. The development has significant implications for the country’s pharmaceutical sector and its ability to attract global investment, leaving it uncertain how the government will respond to AstraZeneca’s warning.
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