AstraZeneca direct US listing gains key backing as company pivots toward American market

AstraZeneca, the United Kingdom’s most valuable publicly listed company, has secured the backing of leading shareholder advisory groups for its proposal to achieve a direct listing on the New York Stock Exchange. The move is billed as a strategic step to “harmonise” the company’s share listing structure across the London Stock Exchange, Stockholm, and New York, thereby offering greater flexibility to tap into broader pools of capital—particularly in the United States.

Despite the forthcoming US listing, AstraZeneca will remain headquartered and tax-resident in the UK, a decision welcomed by both the London Stock Exchange and the government. However, the development is widely interpreted as an increased pivot towards the United States, now the world’s largest pharmaceuticals market. The company’s commitment to the UK was under scrutiny, given its growing investments and expansion activities across the Atlantic.

Key shareholder advisory groups, including Glass Lewis, Institutional Shareholder Services, and Pirc, have all issued recommendations in support of the proposed changes ahead of a shareholder vote set for 3 November. Glass Lewis acknowledged the “rationale for the advantage of an additional listing in the US” given AstraZeneca’s growing operations stateside, while also highlighting the board’s assurance that UK corporate governance standards would continue to apply.

The proposals come against a backdrop of concerns that AstraZeneca’s shifting emphasis towards the US might impact its dedication to its UK base. Recently, AstraZeneca brokered a deal with US President Trump to lower some drug prices and commenced construction on a $4.5 billion manufacturing plant in Virginia. This forms part of a broader $50 billion commitment to expanding research and manufacturing capacity in the United States, a plan supporting AstraZeneca’s target of $80 billion in group sales by 2030, with half generated in America.

Group chairman Michel Demaré noted that the company’s investor base has shifted dramatically over the past decade, with US shareholders now representing its largest group. With the US offering the world’s most liquid public markets and the largest pool of innovative biopharma investors, AstraZeneca is looking to solidify its presence there while maintaining its London and Stockholm listings.

Operationally, the London listing will convert to a depositary interest structure, exempting AstraZeneca shares from UK stamp duty. Some estimates indicate this could cost the UK Treasury between £170 million and £200 million in tax revenue. Despite the strategic shift, AstraZeneca will continue to feature in London’s FTSE 100 and Sweden’s OMX Stockholm 30 indices, bound by UK governance standards including the Companies Act 2006 and the UK corporate governance code.