AstraZeneca shares fell on Monday after the company announced a direct listing on the New York Stock Exchange, replacing its American depositary receipts on the Nasdaq. The move, described as a 'knock-back for London', requires shareholder approval and puts its US shares on an equal footing with its London-listed stock.
The FTSE 100 drugmaker, valued at about £170bn, insisted it will remain headquartered in Cambridge, England, and stay listed on the London Stock Exchange. Chair Michel Demaré said the new structure would allow it to 'reach a broader mix of global investors' and make it 'even more attractive' for shareholders.
Analysts expressed mixed reactions. Neil Wilson of Saxo Markets noted 'relief that it’s not pursuing a primary listing in New York, but the decision is hardly a ringing endorsement of London.' Russ Mould of AJ Bell warned of 'nervousness' about the risk of losing one of the UK's largest constituents, hinting at 'the possibility of a more dramatic shift at some point in the future.'
The company's commitment to the UK has faced scrutiny after pausing a £200m expansion in Cambridge and scrapping a £450m vaccine site revamp in Liverpool, citing reduced government support. AstraZeneca made $23.2bn in US revenue last year, about 43% of its total, expected to reach 50% by decade's end.
A government spokesperson said the confirmation that AstraZeneca will stay listed, headquartered, and paying tax in the UK 'brings long-awaited clarity and is good news for jobs, growth and innovation.' The company's CEO, Sir Pascal Soriot, has previously expressed frustration over the UK's rejection of its breast cancer drug Enhertu and concerns about the UK slipping in global research rankings.
