First reported by Financial Times and claimed by several British newspapers, AstraZeneca might move operations away from the UK in response to the newly elected government’s plans to cut aid. The report further claimed that the UK-headquartered Anglo-Swedish drugmaker is looking to move its facility from Speke to the US or India.
Previously, the Conservative government in the UK along with AstraZeneca had planned a total investment of £650 million ($827 million), of which £450 million ($574 million) was to be invested in AZ’s Speke facility, while £200 million ($255 million) would be used to expand the firm’s presence near its global headquarters in Cambridge, UK.
However, following the recent elections and change in administration, the government’s stance has changed. An FT report said, the British finance minister Rachel Reeves wants to reduce the amount pledged amount (a part of the aforementioned £650 million) from £90 million to £40 million.
Denying the claims, a spokesperson from AstraZeneca told BioProcess Insider, “We are committed to pursuing the opportunity at Speke and are in constructive discussions with the UK government. We have no idea where the comments in some media come from, and they do not seem to be based on facts. As an example, there are no discussions in the US or India.”
In January 2024, AstraZeneca reportedly urged the UK government to grant £100 million state aid package to expand its influenza vaccine plant in Speke. While speaking about the £650 million grant, Pascal Soriot, CEO of AZ said, “AstraZeneca’s planned investment would enhance the UK’s pandemic preparedness and demonstrates our ongoing confidence in UK life sciences.”
“We are committed to making the UK one of the best places in the world to develop and manufacture new and innovative medicines, and we are in positive discussions with AstraZeneca to support the delivery of this planned investment in Speke,” a spokesperson from His Majesty’s Treasury told us.
“The UK’s £108 billion life sciences sector provides over 300,000 high skilled jobs across the country and is crucial for the country’s health, wealth, and resilience. We are committed to making the UK one of the best places in the world to invest in developing and manufacturing new, innovative medicines – both protecting public health and growing our economy.”
In the past, Soriot has criticized the government and the country’s corporate tax rate of 25%. Moreover, the “discouraging” tax rate in the UK has previously led AZ to shelve plans to build a $360 million manufacturing plant in northwest England, as reported by the Guardian in February 2023.
AstraZeneca has invested $135 million to build a 2,700 square-meter addition to its existing Sweden Biomanufacturing Center in Södertälje. The company expects the new expansion to begin manufacturing operations during the fourth quarter of 2027.
The expanded facility will include equipment for filling biological drugs into pre-filled syringes. The firm also said that the expansion emphasizes its commitment to economic growth within the region by creating additional job opportunities.
The firm plans to increase the area of an existing building by 50%, marking the largest investment made in the facility since it opened in 2021.
“We are pleased with this investment in Södertälje, which demonstrates AstraZeneca's commitment to innovation and manufacturing of biologics in Sweden,” said Per Alfredsson, senior vice president of global biologics operations, AstraZeneca. “The planned expansion will strengthen our ability to deliver high-quality, life-changing medicines to patients worldwide. It is also an expression of the confidence we have in the expertise and potential that exists in the region.”
The firm did not respond when contacted by this publication.
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