AstraZeneca Halts £200m Cambridge Expansion Amid Growing Pressure on UK Pharma Sector
AstraZeneca has paused its planned £200 million investment to expand its Cambridge research site, dealing another setback to the UK’s pharmaceutical industry just days after US rival Merck scrapped a major London project.
The Cambridge expansion, announced by the former government in March 2024, was expected to create 1,000 jobs and significantly boost the UK’s life sciences sector. The project was part of a £650 million investment package that also included a vaccine plant expansion in Liverpool, which AstraZeneca cancelled earlier in January citing reduced government support.
An AstraZeneca spokesperson confirmed the decision, saying: “We constantly reassess the investment needs of our company and can confirm our expansion in Cambridge is paused.”
The announcement comes amid increasing competition for pharmaceutical investment, with companies shifting focus to the US following pressure from President Donald Trump. Trump has threatened tariffs of up to 250% on drug imports to encourage firms to manufacture and develop medicines domestically.
In July, AstraZeneca revealed plans to invest $50 billion (£36.9bn) in US-based manufacturing and research over the coming years.
The UK, meanwhile, has seen its share of pharmaceutical spending decline. A decade ago, medicines accounted for 15% of NHS expenditure, but that figure has dropped to 9%, compared with between 14% and 20% in other developed nations. Industry leaders warn this trend is making Britain less attractive for global drug makers.
Merck, known as MSD in Europe, announced earlier this week that it would abandon its £1 billion UK expansion project at London’s King’s Cross and relocate its life sciences research operations to the US, citing successive UK governments’ failure to adequately value innovative medicines.
AstraZeneca’s Cambridge project was intended to expand its Discovery Centre, which already employs 2,300 researchers and scientists. Its suspension means none of the £650 million worth of life sciences projects unveiled by the previous government are currently moving forward.
The company’s earlier decision to abandon the Liverpool vaccine plant expansion followed what it described as “protracted” negotiations with the government, where the final support package was significantly reduced compared with earlier commitments.
The UK government has long highlighted life sciences as a key growth industry. Former Chancellor Jeremy Hunt described the sector as “crucial for the country’s health, wealth and resilience,” while current Chancellor Rachel Reeves recently praised AstraZeneca as one of the UK’s “great companies.”
However, the back-to-back cancellations by AstraZeneca and Merck signal a deepening crisis for the UK’s pharmaceutical sector, with industry experts warning that unless the government acts swiftly to boost competitiveness, more global investment could be diverted overseas.
