AstraZeneca warns of moving UK vaccine production to US, FT reports
4:58 pm Thursday, August 22nd, 2024
(Reuters) -AstraZeneca has warned it could relocate its vaccine manufacturing site from the UK to the U.S. amid a deadlock with the new Labour government over plans to cut state aid, the Financial Times reported on Thursday.
British finance minister Rachel Reeves wants to reduce state provisions to the vaccine centre, which will cut the pledge made by the previous administration from about 90 million pounds to 40 million pounds, the report said, citing sources.
The previous offer included up to 70 million in grants to develop a facility in Speke, Liverpool and 20 million pounds in research and development support from the UK Health Security Agency, per FT.
Manufacturing could take place in India, where the company has produced vaccines in the past, people briefed on the discussions told the newspaper.
“We are in positive discussions with AstraZeneca to support the delivery of this planned investment in Speke,” a UK Treasury spokesperson said. AstraZeneca did not respond to a Reuters request for comment.
The Sunak administration in March planned to invest 650 million pounds in the Anglo-Swedish drugmaker to boost research, development and manufacturing of vaccines.
(Reporting by Urvi Dugar in Bengaluru; Additional reporting by Chandni Shah in Bengaluru; Editing by Arun Koyyur)
