AstraZeneca has paused its £200 million investment plan for a research site in Cambridge, impacting the UK pharmaceutical sector. This initiative was originally unveiled in March 2024 by the previous government and was expected to generate 1,000 jobs. The postponement follows Merck’s recent cancellation of a £1 billion UK expansion, which it attributed to insufficient government investment. Additionally, Merck is facing external pressures from the U.S. government to enhance domestic pharmaceutical investment.
An AstraZeneca representative confirmed the decision, stating that the company routinely evaluates its investment requirements. Meanwhile, UK spending on pharmaceuticals has decreased from 15% to 9% of the NHS budget over the past decade, contrasting with other developed nations that allocate between 14% and 20%. This decline, coupled with U.S. tariff threats on drug imports, has prompted pharmaceutical firms to seek investment opportunities in the U.S. AstraZeneca had previously announced a $50 billion (£36.9 billion) investment in U.S. manufacturing and research and development.
Merck, which had begun construction on a new facility in London scheduled for completion in 2027, announced it would not occupy the site any longer and shift its research efforts to the U.S., citing perceived undervaluation of innovative medicines by successive UK governments.
AstraZeneca’s decision means that none of the previously touted £650 million UK investment will proceed as planned. The halted Cambridge project was intended to expand upon the existing Discovery Centre, which already supports 2,300 researchers. This decision follows the company’s earlier scrapping of a £450 million expansion at a vaccine manufacturing plant in Merseyside, which officials attributed to reduced government support and challenges in negotiations. The UK government has historically viewed the life sciences sector as vital for the nation’s economy and health resilience.
Source: https://www.bbc.com/news/articles/cderlg227j4o?at_medium=RSS&at_campaign=rss