AstraZeneca has announced a pause on its planned £200 million expansion of its research site in Cambridge, a move that casts further doubt on the future of the UK pharmaceutical industry’s growth ambitions.
The project, initially unveiled in March 2024 by the previous UK government, was expected to create around 1,000 new jobs and build on AstraZeneca’s existing Discovery Centre, which currently employs 2,300 researchers and scientists.
This decision comes amid a turbulent period for UK pharma investments. Earlier this year, AstraZeneca also scrapped a £450 million plan to expand its vaccine manufacturing plant in Merseyside, citing reduced government support and “protracted” negotiations as key factors.
The pharmaceutical giant’s announcement follows similar moves by other multinational companies. In particular, US pharma giant Merck canceled a £1 billion UK expansion plan, pointing to inadequate government investment and increasingly competitive conditions abroad.
While the UK pharmaceutical sector faces setbacks, many companies are pivoting their investment focus towards the United States. In July, AstraZeneca revealed plans to invest $50 billion (£36.9 billion) in US-based manufacturing and research and development, reflecting the impact of geopolitical and economic pressures, including US President Donald Trump’s threats of tariffs on drug imports.
Merck also confirmed it will relocate its life sciences research to the US, abandoning a London King’s Cross site under construction.
Funding Concerns and UK Government Role
The pause comes against a backdrop of declining UK spending on medicines. Over the last decade, the NHS budget allocation for medicines has shrunk from 15% to 9%, while comparable countries maintain spending levels between 14% and 20%.
Despite being hailed by successive governments as a vital sector, the life sciences industry has seen significant funding challenges. Former Chancellor Jeremy Hunt described life sciences as “crucial for the country’s health, wealth and resilience,” while Chancellor Rachel Reeves praised AstraZeneca as one of the UK’s “great companies” shortly before the Liverpool expansion was shelved.
What This Means
AstraZeneca’s latest move means that none of the £650 million in UK life sciences investments previously promised by the government are currently progressing. The pause on the Cambridge project leaves the future of one of the UK’s flagship pharma initiatives uncertain.
An AstraZeneca spokesperson said,
“We constantly reassess the investment needs of our company and can confirm our expansion in Cambridge is paused.”
As the UK vies to remain competitive in the global pharmaceutical landscape, this development raises questions about the country’s ability to retain top-tier industry players and maintain its role in groundbreaking medical research.
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