By Charlotte Webster-
The pharmaceutical giant AstraZeneca has paused a £200 million investment at its Cambridge research site, a move that delivers another blow to the UK’s life sciences sector. This AstraZeneca investment pause was announced on Friday, marking the second major UK project the company has halted this year. The project, which was set to create 1,000 jobs, was initially part of a £650 million UK investment package announced in March 2024.
AstraZeneca boss Pascal Soriot announced the firm’s $50bn investment in the US in July. Getty Images
This latest development follows the company’s decision in January to abandon plans for a £450 million vaccine manufacturing plant in Merseyside. At the time, an AstraZeneca spokesperson cited a “reduction in government support” as a key factor in the decision. These setbacks suggest a growing trend of pharmaceutical firms reconsidering their UK commitments.
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Wider Industry Concerns Triggering AstraZeneca Investment Pause
The AstraZeneca investment pause is not an isolated event. It comes on the heels of US pharmaceutical company Merck scrapping a £1 billion UK expansion, blaming the lack of government investment. The industry has expressed concern over what it perceives as an undervaluing of innovative medicines by successive UK governments.
The UK’s spending on medicines, at just 9% of the NHS budget, falls well short of the 14-20% spent by other developed nations. Meanwhile, a different climate for pharmaceutical companies exists in the United States, where President Donald Trump has pressured them to invest domestically with threats of high tariffs on drug imports. In July, AstraZeneca announced a substantial $50 billion investment in the US for R&D and manufacturing.
This series of events has led to warnings from prominent figures in the life sciences community. One senior scientist warned that other big pharmaceutical companies are considering pulling out of the UK. This highlights the urgent need for a more competitive environment to attract and retain investment in this critical sector.
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For further information on the broader challenges facing the sector, you can read the latest report from the Association of the British Pharmaceutical Industry (ABPI).
To learn more about the UK’s life sciences strategy, see the government’s Life Sciences Sector Plan.
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