AstraZeneca Plc said it chose Ireland for a new manufacturing facility instead of the UK because of punitive tax rates, raising fresh fears over Britain’s attractiveness to big pharma.
(Bloomberg) — AstraZeneca Plc said it chose Ireland for a new manufacturing facility instead of the UK because of punitive tax rates, raising fresh fears over Britain’s attractiveness to big pharma.
The drugmaker initially wanted to make the investment of around $360 million in the UK, but “the tax rate was discouraging,” Chief Executive Officer Pascal Soriot said in a briefing with journalists. “You need an environment that gives you good returns and incentive to invest.”
Soriot also pointed out Ireland’s commitment to rapidly delivering green energy over the next few years as another reason why that country is more attractive for Cambridge, England-based AstraZeneca.
The comments are at odds with the government’s ambitions to turn the UKL into a life-sciences superpower. Prime Minister Rishi Sunak announced the creation of a new science department this week as part of a broader reorganization.
Other pharmaceuticals leaders have also pointed to the challenges facing the UK, with GSK Plc CEO Emma Walmsley last week warning that Britain is at a “tipping point” if the right decisions aren’t taken soon. Sanofi CEO Paul Hudson said last week that the UK is at risk of causing long-term damage to its once-vaunted life science sector, which would further limit patients’ access to cutting-edge medicines.
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Soriot highlighted the need for clinical developers, statisticians, manufacturers, IT staff and regulatory workers to build a vibrant industry, despite the “fantastic science” in the UK.
“If we want a flourishing life sciences sector, we need more than discovery science,” Soriot said. “It’s all very nice to discover something in the lab. At some point you need other types of people to progress the project.”
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