EU grants approval for AstraZeneca's cancer drug
In a potential shakeup for the UK's financial markets, pharmaceutical giant AstraZeneca is reportedly considering moving its primary stock listing from the London Stock Exchange to the New York Stock Exchange. This move, driven primarily by business and operational concerns, could have significant implications for both the UK and US economies.
The reasons behind this potential shift are multifaceted. AstraZeneca's CEO, Pascal Soriot, has expressed growing frustration with the UK's drug regulators and pricing policies, particularly in light of the rejection of the company's cancer drug Enhertu for HER2-low breast cancer by England's NICE. Soriot also voiced concerns over restrictions on new medicines and pricing structures in the UK, which he views as hindering AstraZeneca's growth and innovation opportunities.
Moreover, the strategic positioning of AstraZeneca aligns closely with its significant US investments. The company has been expanding its manufacturing and R&D presence in the United States, committing billions of dollars to this effort since 2016. Discussions have even included the possibility of basing more of the business in the US.
The potential move would be a major blow to the London Stock Exchange and the UK economy, considering AstraZeneca is the second-largest UK company by market capitalisation, with a value of approximately £158 billion. The shift could add political pressure on the UK government, which is also trying to boost life sciences as a key industrial sector.
It's important to note that the move is still under discussion and would require board approval. AstraZeneca has not publicly confirmed the intent to switch listings but acknowledges ongoing conversations with the UK government regarding support for the pharmaceutical sector.
Meanwhile, AstraZeneca's bladder cancer treatment Imfinzi has been approved for use in the European Union, with the company's head of oncology haematology unit, Dave Fredrickson, stating that Imfinzi is poised to transform the standard of care for muscle-invasive bladder cancer in Europe. AstraZeneca shares edged up 1.3 per cent yesterday in response to this news.
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[1] Financial Times, 2023. AstraZeneca considers moving to US stock market. [Online]. Available: https://www.ft.com/content/7236a01c-c63e-49e3-9a15-0f151d32a63f [2] The Guardian, 2023. AstraZeneca in talks over US listing as frustration with UK rules grows. [Online]. Available: https://www.theguardian.com/business/2023/mar/01/astrazeneca-in-talks-over-us-listing-as-frustration-with-uk-rules-grows [3] Reuters, 2023. AstraZeneca's bladder cancer drug Imfinzi approved for use in Europe. [Online]. Available: https://www.reuters.com/business/healthcare-pharmaceuticals/astrazenecas-bladder-cancer-drug-imfinzi-approved-use-europe-2023-03-01/
- The strategic positioning of AstraZeneca, with its significant investments in the US, may prompt the company to consider a stock market listing in New York, aligning closely with its growing frustrations with the UK's drug regulators and pricing policies.
- The potential shift of AstraZeneca's primary stock listing from the London Stock Exchange to the New York Stock Exchange could have implications beyond just the economies of the UK and US, as it could also impact the growth and innovation opportunities of the pharmaceutical sector, particularly in light of medical-conditions like cancer.
- The move to the New York Stock Exchange could potentially see AstraZeneca increase its investment in business areas such as R&D and manufacturing in the US, further solidifying its strategic position within the finance and science industries.
