AstraZeneca May Move UK Vaccine Production to US

Pharmaceutical titan AstraZeneca has issued a warning that it could potentially shift its vaccine manufacturing operations from the UK to the US. This stems from an impasse with the newly elected Labour government regarding proposed reductions to state aid, according to a report by the Financial Times on Thursday.

Rachel Reeves, the UK’s Chancellor of the Exchequer, has expressed intentions to scale back state funding to the vaccine facility. This move would lessen the commitment put forth by the prior government from approximately £90 million (€107 million) down to £40 million (€47 million), the report suggested, attributing the information to unnamed sources.

The prior deal included a provision for up to £70 million in funding for the development of a facility in Speke, Liverpool, along with £20 million set aside for research and development aid from the UK Health Security Agency, according to information found in the Financial Times.

Additionally, the report suggested that production could occur in India, where AstraZeneca has a history of vaccine manufacturing, as insiders associated with the discussions informed the newspaper.

A spokesperson for AstraZeneca countered the speculation stating no discussions regarding the US or India are underway, as the company remains committed to the Speke opportunity and is actively engaged in productive discussions with the UK government.

The UK Treasury reinforced this sentiment with a spokesperson noting, “We are optimistically engaged in dialogue with AstraZeneca to facilitate the planned investment in Speke.”

Previously, plans drawn up in March by the Sunak administration intended to infuse the Anglo-Swedish drug manufacturer with a £650 million investment to accelerate research, development and manufacturing of vaccines, according to Reuters.

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