Shares of AstraZeneca PLC (LSE:AZN) rose 2.2% after The Times reported that CEO Sir Pascal Soriot has privately shown interest in moving the company’s stock listing from the UK to the United States.
According to sources familiar with Soriot’s thinking, he has repeatedly expressed a desire to relocate AstraZeneca’s listing from the FTSE 100 to a U.S. exchange, and has even considered changing the company’s legal domicile. However, such a move could face resistance from some members of the board as well as from the British government, which reportedly has not been informed of these talks.
Soriot, who has led AstraZeneca since 2012, has publicly raised concerns about Europe falling behind the U.S. and China in the race to develop innovative medicines—two key markets that generate the bulk of the company’s revenue worldwide.
Insiders say Soriot is “deeply frustrated” with the UK regulatory environment, especially the challenges posed by the National Institute for Health and Care Excellence (NICE) related to drug approvals and pricing caps under the NHS rebate program.
If AstraZeneca were to relocate its listing, it would be a landmark shift for the UK’s corporate landscape, given that the company is currently the country’s most valuable publicly traded firm. Over the past decade, under Soriot’s leadership, AstraZeneca has become a cornerstone of the British pharmaceutical industry.
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