AstraZeneca has paused a planned £200 million expansion of its Cambridge research site, meaning none of its previously announced £650 million UK investment package is currently proceeding. The decision, confirmed by a company spokesperson on Friday, marks another blow to the UK pharmaceutical sector following a week of negative announcements.
The stalled Cambridge project had been expected to create 1,000 jobs. In January, AstraZeneca scrapped plans to invest £450 million in a vaccine manufacturing facility in Speke, Merseyside, citing reduced government support after months of negotiations. The company said it constantly reassesses its investment needs but offered no further comment on the pause.
The UK setback contrasts with AstraZeneca's moves abroad. In July, the company announced a $50 billion (£37 billion) investment in the US by 2030, including a new drug manufacturing facility in Virginia and expansions in Maryland, Massachusetts, California, Indiana and Texas. The pledges come amid threats of sector-specific tariffs from Donald Trump.
The news caps a difficult week for UK life sciences. On Wednesday, US drugmaker Merck (known as MSD in Europe) scrapped a £1 billion London research centre and laid off 125 scientists. On Thursday, Sir John Bell, former regius professor of medicine at Oxford, warned that other big pharmaceutical companies would stop investing in the UK. On Friday, Sanofi's UK head Paul Naish told the Guardian that Britain needs a proper plan from the Treasury, adding that the country has become "not a good place" to develop or sell drugs.
Eli Lilly also confirmed this week that its planned London gateway lab, part of a £279 million investment, is on hold. The pharmaceutical industry has long argued that the UK needs to increase NHS spending on new medicines. A dispute with health secretary Wes Streeting intensified after NHS pricing negotiations broke down in August, with the industry seeking a reduction in the clawback rate from nearly 23% to single digits.
