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AstraZeneca CEO hails NHS drug price deal but keeps pause on £200m UK investment
| United Kingdom | politics

AstraZeneca CEO hails NHS drug price deal but keeps pause on £200m UK investment

#AstraZeneca #Pascal Soriot #NHS #Drug Pricing #Cambridge #Pharmaceuticals #Life Sciences #UK Investment

📌 Key Takeaways

  • AstraZeneca CEO Pascal Soriot welcomed the new NHS drug pricing deal but refused to unfreeze a £200 million investment in Cambridge.
  • The planned expansion remains on hold due to high government levies on branded medicine sales and the overall financial climate.
  • The pharmaceutical giant cited the slow pace of UK clinical trials and drug adoption as ongoing barriers to domestic growth.
  • The investment freeze poses a challenge to the UK government's goal of becoming a global 'science superpower'.

📖 Full Retelling

AstraZeneca Chief Executive Pascal Soriot announced during a corporate update in London on February 10, 2026, that the pharmaceutical giant will maintain its freeze on a planned £200 million investment in its Cambridge research facility despite a new pricing agreement between the UK government and the industry. While Soriot praised the recent Voluntary Scheme for Branded Medicines Pricing, Access, and Growth (VPAG) as a positive step toward stabilizing the market, he clarified that the deal alone is insufficient to justify resuming the expansion of the company's UK footprint. The decision highlights ongoing tensions between the life sciences sector and the National Health Service (NHS) over budgetary constraints and clinical trial competitiveness. The proposed investment, which was originally intended to turn the Cambridge site into a premier global hub for oncology and rare disease research, was paused last year amid concerns over the high levies the UK government places on drug revenues. Under the current system, pharmaceutical companies must pay a percentage of their sales back to the government if the NHS's total spending on branded medicines exceeds a specific growth cap. Soriot argued that while the new agreement offers more predictability than previous iterations, the overall fiscal environment in Britain remains challenging compared to rival markets in the United States and Europe. Beyond tax and pricing concerns, AstraZeneca has expressed frustration with the bureaucratic hurdles of the UK’s clinical trial infrastructure. The company noted that the speed at which new treatments are approved and adopted by the NHS has lagged behind international peers, making it difficult to justify massive capital expenditures in the domestic market. For the UK government, the continued pause on the £200 million project represents a significant blow to its public ambitions of transforming the country into a post-Brexit "science superpower." Industry analysts suggest that the standoff is a strategic signal to the Treasury, as the pharmaceutical sector seeks further incentives, such as R&D tax credits and improved access to patient data for research. AstraZeneca remains the UK’s largest drugmaker by market value, and its investment decisions are often seen as a bellwether for the health of the nation's broader life sciences ecosystem. For now, the company has indicated it will continue to monitor the practical impact of the new pricing deal before committing to further long-term infrastructure projects in Britain.

🏷️ Themes

Business, Healthcare, Politics

📚 Related People & Topics

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City and district in Cambridgeshire, England

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National Health Service

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Publicly-funded healthcare systems in the United Kingdom

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📄 Original Source Content
<p>Pascal Soriot suggests UK-US agreement will not be enough to revive plan to expand Cambridge site</p><ul><li><p><a href="https://www.theguardian.com/business/live/2026/feb/10/global-stocks-record-highs-bp-annual-profits-slump-us-retail-sales-live-news-updates">Business live – latest updates</a></p></li></ul><p>The boss of Britain’s biggest pharmaceutical company has said the government’s recent drug pricing deal is a “very posi

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