AstraZeneca, Britain’s biggest drugmaker and a flagship of Cambridge’s life sciences sector, has sent shockwaves through the City of London and Westminster with reports that its chief executive, Sir Pascal Soriot, is considering moving the company’s stock market listing—and possibly its legal domicile—to the United States.
The Times revealed that Sir Pascal has privately expressed his desire to shift AstraZeneca’s listing to the US stock market, a move that sent the company’s shares surging nearly 3%. Investors appear to back the idea, with Ketan Patel from Whitefriars Investment Group saying a US listing “would provide the company with greater access to financing and a wider and deeper shareholder base.”
Though AstraZeneca declined to comment directly, it did not deny the CEO’s enthusiasm for the switch.
If carried out, this would be a devastating blow to the London Stock Exchange, which has struggled recently with a spate of high-profile departures and a lack of new listings. AstraZeneca is the largest company listed in London, and its exit would be a symbolic and financial setback.
The move also threatens to undermine the UK government’s forthcoming life sciences sector plan, expected to be unveiled shortly, which aims to boost economic growth and strengthen the NHS through investment in the industry.
Sources close to AstraZeneca suggest frustration with the UK’s tax policies, costly NHS drug rebates, and stalled support for new manufacturing facilities have driven the company’s anger. Last year, AstraZeneca scrapped plans for a £450 million vaccine factory in Liverpool after the government cut back on financial backing. In 2023, it bypassed Britain for a $400 million drug factory citing a “discouraging” tax environment.
Sir Pascal has made clear that pharmaceutical investment flows to countries where companies feel “welcome.” The spectre of AstraZeneca’s departure only intensifies pressure on ministers to resolve the thorny issues around drug pricing and rebates, which last year cost pharma firms £3 billion.
City insiders warn that the loss of AstraZeneca would be “catastrophic” and could slow progress on reforms at the London Stock Exchange, which has been trying to fend off a corporate exodus.
As AstraZeneca already trades American Depositary Receipts in the US, a full relocation is logistically feasible but would require board approval.
Meanwhile, government spokespeople maintain confidence in the forthcoming Life Sciences Sector Plan, describing it as a “ten-year mission” to harness the industry’s potential. But with AstraZeneca’s future in the UK hanging in the balance, questions remain: can Britain keep its crown jewel of pharma, or will it lose out to more business-friendly shores?
And crucially, what will this mean for the UK economy and taxpayers who rely on a thriving domestic life sciences sector?
