AstraZeneca wants up to £100m in government assistance to expand its vaccine production facility located in the northwest of England.
The UK’s largest public company, which is also the most valuable in the world, plans to submit an official application to the government next month for public funding, to help develop the nasal flu vaccines factory at Speke, near Liverpool.
The plans are being announced at a time when the relationship between the pharmaceuticals company and the government as well as other industry players is strained. In a rare public criticism, Sir Pascal Soriot was AstraZeneca’s chief executive. He blamed Britain’s uncompetitive taxes for the company’s decision to invest in a manufacturing plant in Ireland rather than the UK.
Tom Keith-Roach said in the past that Britain lost out on investment due to countries that were more competitive.
Other large multinational bosses also criticised the government during a long-running disagreement over an escalating NHS sales levy for branded drugs, before a November agreement was reached.
Jeremy Hunt, chancellor of the United Kingdom, has named the life sciences industry as one the five most important sectors for the country. Ministers would likely be delighted if AstraZeneca made an investment before a general elections.
AstraZeneca, which has overtaken Shell as the biggest market capitalisation in London, is largely due to the launch of a number of blockbuster cancer treatments that have revolutionized its finances and share prices. AstraZeneca became known during the pandemic because of its partnership with Oxford University on the Covid-19 vaccine.
It struck a deal last month to acquire Icosavax Nasdaq listed company in a $1.1 billion deal as it expands its infectious disease business created during pandemic.
AstraZeneca has 400 employees in Speke. This is a location it acquired in 2007 as part of the $15.6 billion acquisition of MedImmune. The Fluenz vaccine is produced at the Speke site and distributed in Britain, Europe, and the United States. The company wants to expand its manufacturing capacity and modernize its technology.
Under its “vision” for life sciences, the government has allocated funding to help boost manufacturing. The government has set aside funding to boost manufacturing in the sector under its “vision” for life sciences.
AstraZeneca has declined to comment about the reported possible investment in Speke.
The government refused to comment on commercial matters, but stated that it was “committed” to “cementing the UK’s reputation as one of the top locations in the globe for global life science companies to innovate and invest.” In the past year, we announced a number of measures, backed by more than £1 billion, to support growth, innovation and investment in UK life sciences. This included £121 million for rapid progress in the O’Shaughnessy Review into clinical trials. We continue to invest heavily and record amounts in R&D.
AstraZeneca shares were flat for the day and only up 2p to £104.54.