AstraZeneca falls 3% as £200m Cambridge expansion put on hold

Investing.com -- AstraZeneca (LON:AZN) shares fell 3% on Monday after the drugmaker paused a planned £200 million ($271 million) investment in its Cambridge research hub.

The decision, which had been expected to create 1,000 jobs, marks the latest pullback by a pharmaceutical company in Britain.

The investment had been announced in March 2024, but none of the funding is currently moving ahead. 

In January, AstraZeneca also scrapped plans to invest £450 million in a vaccine manufacturing facility in northern England after the British government cut support.

U.S. rival Merck & Co this week abandoned plans for a new research centre in London, blaming the country’s difficult business climate. 

Asked about its investment outlook following Merck’s move, AstraZeneca confirmed the Cambridge expansion 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 pause is a setback for Prime Minister Keir Starmer’s government, coming days before the U.S. President Donald Trump arrives in Britain for a state visit. 

AstraZeneca, the biggest company on the FTSE 100, in July announced a $50 billion U.S. expansion by 2030, part of a wave of drugmaker reactions to Trump’s tariff policy.

Trump has criticised Britain and Europe for not paying high enough prices for medicines, while several pharmaceutical firms argue the UK undervalues drugs and innovation. 

After dropping its vaccine site plan, AstraZeneca CEO Pascal Soriot urged the government to improve the investment environment.

The Association of the British Pharmaceutical Industry this week warned Britain is “increasingly being ruled out of consideration as a viable location for pharmaceutical investment” as talks stall over how much revenue should be returned to the NHS.

The UK is seeking to soften the impact of Trump’s forthcoming pharma tariffs. In May, London and Washington agreed to work toward “significantly preferential treatment outcomes on pharmaceuticals,” including a pledge to improve conditions for companies operating in Britain.

Drugmakers have pressed overseas governments to pay more for drugs in response to Trump’s calls for lower U.S. prices. Last month, Eli Lilly raised the UK price of its weight-loss treatment Mounjaro by 170%.

Reuters first reported the development.