What's happened
AstraZeneca's CEO Pascal Soriot is reportedly exploring the possibility of relocating the company's stock market listing and corporate base to the US, citing frustrations with the UK's regulatory environment. This potential move could significantly impact the UK market and the government's industrial strategy.
What's behind the headline?
Key Considerations
- Regulatory Frustrations: Soriot's concerns stem from the UK's slower drug approval processes and lower healthcare spending compared to the US and Europe.
- Market Impact: Moving AstraZeneca's listing could lead to significant losses for the UK stock market, following other major exits like Wise and Glencore.
- Investment Strategy: The US market is crucial for AstraZeneca's growth, with over 40% of its revenue coming from there. A US listing could enhance its financial support and operational flexibility.
- Political Ramifications: This potential shift poses challenges for the UK government, which is trying to bolster its life sciences sector as part of its industrial strategy. Soriot's frustrations highlight the need for improved support for the pharmaceutical industry in the UK.
What the papers say
According to Julia Kollewe in The Guardian, Soriot's discussions about moving AstraZeneca's stock listing have sent shockwaves through the UK scientific community, threatening the government's industrial strategy. Kollewe notes that AstraZeneca's share price rose following the news, reflecting investor interest despite the potential move.
Karl Matchett from The Independent emphasizes that such a move would be a significant blow to the UK stock market, given AstraZeneca's market capitalization of over £161 billion. He highlights Soriot's longstanding frustrations with the UK regulatory environment and the need for better support for the pharmaceutical sector.
Bloomberg adds that Soriot's concerns about the UK's regulatory regime are part of a broader narrative about the country's competitiveness in the global pharmaceutical landscape, particularly in comparison to the US and China.
How we got here
Pascal Soriot has led AstraZeneca to become the UK's most valuable company, but recent frustrations with the UK government over drug approvals and investment support have prompted discussions about moving to the US. The company has already invested heavily in US operations.
Go deeper
- What are the implications of AstraZeneca moving to the US?
- How has the UK government responded to AstraZeneca's concerns?
- What impact would this have on the pharmaceutical industry in the UK?
Common question
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Why is AstraZeneca Considering a Move to the US?
AstraZeneca's potential relocation of its stock market listing and corporate base to the US has raised eyebrows and sparked discussions about the implications for the UK market and the pharmaceutical industry. As CEO Pascal Soriot expresses frustrations with the UK's regulatory environment, many are left wondering what this means for the future of AstraZeneca and the broader corporate landscape.
More on these topics
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Sir Pascal Claude Roland Soriot (born 23 May 1959) is a French-born Australian businessman and chief executive of the British-Swedish multinational pharmaceutical and biotechnology company AstraZeneca.
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AstraZeneca PLC is a British-Swedish multinational pharmaceutical and biopharmaceutical company with its global headquarters in Cambridge, England. Its R&D is concentrated in Cambridge, England, Mölndal in Sweden and North America.
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London Stock Exchange is a stock exchange in the City of London, England. As of April 2018, London Stock Exchange had a market capitalisation of US$4.59 trillion. It was founded in 1571, making it one of the oldest exchanges in the world.