By Alistair Smout and Maggie Fick
LONDON (Reuters) – Britain’s biggest company AstraZeneca has paused a planned 200 million pound ($271.26 million) investment in its Cambridge research site, a spokesperson said, the latest drugmaker to retreat from Britain.
The decision on the investment, which had been set to create 1,000 jobs, means none of AstraZeneca’s planned new funding – originally announced in March 2024 – is currently proceeding.
In January, the company scrapped plans to invest 450 million pounds in its vaccine manufacturing plant in northern England, citing a cut in British government support.
U.S. drugmaker Merck & Co this week blamed the UK’s challenging business environment as it abandoned a new research centre in London.
Asked about speculation over its pharmaceutical investments following the Merck announcement, a spokesperson for AstraZeneca, which has the biggest market capitalisation on the FTSE 100, confirmed it would pause its investment plans in Cambridge, where it has one of Britain’s leading life sciences hubs.
“We constantly reassess the investment needs of our company and can confirm our expansion in Cambridge is paused. We have no further comment to make,” an AstraZeneca spokesperson said.
The news, which will come as a blow to Prime Minister Keir Starmer’s government and its efforts to draw investment into the UK’s stagnant economy, comes just days before U.S. President Donald Trump arrives in Britain for a state visit.
AstraZeneca in July said it would spend $50 billion to expand manufacturing and research capabilities in the United States by 2030 – one of many announcements by pharmaceutical companies reacting to Trump’s tariff policy.
Trump has criticised Britain and Europe for not paying high enough prices for drugs, and several pharmaceutical firms have criticised Britain for what they say is long-term undervaluation of medicines and innovation.
After AstraZeneca dropped its vaccine plant investment plan, Chief Executive Pascal Soriot urged Britain to improve the environment for businesses in order to drive investment.
($1 = 0.7373 pounds)
(Reporting by Alistair Smout and Maggie Fick; Editing by Kirsten Donovan)
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