Shares of AstraZeneca (LSE:AZN) fell 3% on Monday after the pharmaceutical giant decided to put a £200 million ($271 million) investment in its Cambridge research campus on hold.
The project, which was expected to create around 1,000 jobs, represents the latest retreat by a UK-based pharma company. The expansion had been announced in March 2024, but the funding is not currently progressing.
Earlier this year, in January, AstraZeneca also canceled plans to invest £450 million in a vaccine production facility in northern England after the UK government scaled back support. Similarly, U.S. competitor Merck & Co abandoned plans for a London research centre this week, citing the country’s challenging business climate.
When asked about its own investment plans following Merck’s announcement, AstraZeneca confirmed the Cambridge project was on hold.
“We constantly reassess the investment needs of our company and can confirm our expansion in Cambridge is paused,” an AstraZeneca spokesperson told Investing.com.
The decision is a setback for Prime Minister Keir Starmer’s government, coming just days before U.S. President Donald Trump is scheduled to visit Britain on a state visit. In July, AstraZeneca—the largest company on the FTSE 100—announced a $50 billion U.S. expansion plan by 2030, part of a wave of responses by drugmakers to Trump’s tariff policies.
Trump has criticized the UK and Europe for not paying enough for medicines, while pharmaceutical companies argue that Britain undervalues drugs and innovation. After abandoning the vaccine site plan, AstraZeneca CEO Pascal Soriot called on the government to improve the investment environment.
The Association of the British Pharmaceutical Industry warned this week that the UK is “increasingly being ruled out of consideration as a viable location for pharmaceutical investment” as negotiations stall over revenue contributions to the NHS.
In an effort to counteract the potential impact of Trump’s upcoming pharma tariffs, London and Washington agreed in May to work toward “significantly preferential treatment outcomes on pharmaceuticals,” including improving conditions for companies operating in the UK. Meanwhile, global drugmakers continue to push for higher overseas drug prices in response to Trump’s pressure, with Eli Lilly recently raising the UK price of its weight-loss drug Mounjaro by 170%.
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