AstraZeneca PLC (GB:AZN) has reportedly warned about relocating its UK vaccine manufacturing site to the U.S. as it is dissatisfied with the new Labour government’s plan to reduce state aid for the project. According to the Financial Times, the pharma giant’s negotiations with the government have stalled. AZN stock gained 0.74% as of writing.
AstraZeneca is Unhappy with New Government’s Moves
AstraZeneca is unhappy with the moves of the new Labour government. The Financial Times reported that Chancellor Rachel Reeves plans to cut state support for the company’s vaccine center, reducing the previous administration’s pledge from approximately £90 million to £40 million. The previous offer included up to £70 million in grants for building a facility in Speke, Liverpool, along with £20 million in research and development support from the UK Health Security Agency.
As a result, AstraZeneca may relocate its vaccine facility from Merseyside in the UK to Philadelphia in the U.S., where it is offered substantial financial backing. According to the Financial Times sources, AstraZeneca also hinted that manufacturing could shift to India, where the company has previously produced vaccines.
If AstraZeneca follows through with this move, the UK might find itself importing these vaccines instead of exporting them. AstraZeneca’s current Speke site is dedicated to producing the nasal flu vaccine, FluMist, which supports the UK’s childhood vaccination programme.
Is AstraZeneca Share a Good Buy?
As per the consensus rating on TipRanks, AZN stock received a Moderate Buy rating based on 16 recommendations, including 11 Buys. The AstraZeneca share price forecast stands at 12,887.71p, which is 2% below the current trading level.
Year-to-date, AZN stock has gained 21.5% in trading.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
