AstraZeneca has hinted at the possibility of moving its vaccine manufacturing operations from the UK to the United States due to stalled negotiations with the UK’s new Labour government over state funding. According to a report by the Financial Times, discussions have hit an impasse as British finance minister Rachel Reeves seeks to reduce the government’s financial support for AstraZeneca’s vaccine center.
The previous government had committed nearly £90 million, but the current proposal slashes that amount to £40 million. The earlier pledge included up to £70 million in grants for developing a facility in Speke, Liverpool, along with £20 million in research and development support from the UK Health Security Agency.
Sources involved in the discussions suggested that AstraZeneca might consider relocating its manufacturing to India, where it has previously produced vaccines, if an agreement cannot be reached. An AstraZeneca spokesperson confirmed the company’s commitment to pursuing the opportunity at Speke and described ongoing talks with the UK government as constructive.
The spokesperson also dismissed reports of potential relocations to the U.S. or India as unfounded. A UK Treasury spokesperson echoed this sentiment, stating that they are engaged in positive discussions with AstraZeneca to support the planned investment in Speke. Earlier this year, the Sunak administration announced plans to invest £650 million in the Anglo-Swedish pharmaceutical company to enhance vaccine research, development, and manufacturing capabilities.
