Home Industry Pharmaceuticals and Life Sciences AstraZeneca Warns UK Risks Los...
Pharmaceuticals and Life Sciences
Business Fortune
17 September, 2025
Following the suspension of its Cambridge expansion, AstraZeneca joined Merck in challenging the UK's drug pricing regulations, leading to pressing demands for government intervention to protect the life sciences industry.
The UK president of AstraZeneca, Tom Keith-Roach, warned lawmakers that the UK is becoming a more challenging location for developing and distributing new medications. His remarks followed the company's decision to postpone a proposed £200 million expansion of its Cambridge discovery center, which would have added about 1,000 jobs. A few days prior, US behemoth Merck had similarly canceled a £1 billion UK investment due to a lack of government backing.
The science minister acknowledged that the UK must spend more on medications, despite aspirations to establish the nation as a global center for life sciences. Meanwhile, the Conservative mayor of Cambridgeshire asked the government to settle a dispute over drug prices to spur growth. After AstraZeneca's ruling, MPs convened an urgent evidence session.
With its roots in Cambridge, Macclesfield, and Liverpool, AstraZeneca is pleased to be the top life sciences firm in the UK, according to Mr. Keith-Roach. The company is assessing its UK presence after losing the UK patent for its leading diabetic medication, Forxiga. He emphasized that developing high-growth pharmaceutical enterprises necessitates taking significant risks, with the backing of innovative governments and health systems. He did, however, caution that it is getting harder to get new medications approved by NICE and into the NHS in the UK.
The UK Department of Health's negotiations with pharmaceutical companies over the pricing of medications fell through in August. NHS spending on medications decreased from 15% to 9% of its budget during the last ten years, whereas other industrialized nations spend between 14% and 20%.
The NHS must stop this loss, according to Science Minister Lord Patrick Vallance, not only by increasing costs but also by guaranteeing quick adoption of innovative medications and fair access. He emphasized that the ultimate beneficiaries should be the economy and the patients.
Although he called AstraZeneca's investment delay "unwelcome," Conservative Mayor Paul Bristow said Cambridge's foundations are still solid and urged the government to take steps to settle the pricing dispute and promote the expansion of the life sciences.
Despite their disappointment, ministers stated that AstraZeneca and the government are now having fruitful discussions. Reiterating faith in the industry as the route to economic development and improved health outcomes, a spokeswoman underlined continued assistance, including up to £520 million for the Life Sciences Innovative Manufacturing Fund and £600 million for the Health Data Research Service.