British pharmaceutical corporation GSK commits a £22bn investment in the United States, coordinating with Donald Trump's visit to the nation
In a series of recent developments, two major pharmaceutical companies, AstraZeneca and Merck, have made significant decisions regarding their investment in the UK.
Last week, US drugs giant Merck announced the scrapping of a £1 billion London research centre and the axing of 125 jobs. This decision comes amidst industry uncertainties, with other companies, such as AstraZeneca, also reconsidering their UK investments.
AstraZeneca, a British-Swedish multinational pharmaceutical and biopharmaceutical company, has recently suspended investment plans in the UK, including halting a £200 million expansion of its Cambridge research site and canceling or pausing a total of £650 million in investments across the country. This move is expected to result in the suspension of 1,000 new jobs.
The warning comes amidst a bitter row over an NHS rebate scheme under which drugs firms must repay 23.5% of the money they make selling drugs to the NHS back to the Government. The Association of the British Pharmaceutical Industry (ABPI) has warned that Britain is falling behind rivals on the proportion of healthcare spending allocated to developing medicines.
However, not all news is negative. Drugmaker GSK has announced a £22 billion investment in the US over the next five years. This investment includes £880 million to be spent on projects such as a new factory for asthma medicines in Pennsylvania and AI technology to be used at sites in Pennsylvania, North Carolina, Maryland, and Montana.
Emma Walmsley, the boss of GSK, said the investment was not a turning away from the UK, but a recognition of the countries' leading roles in science and healthcare innovation. GSK will continue to invest in a significant manufacturing base and more than £1.5 billion in R&D every year in the UK.
The UK president of AstraZeneca, Tom Keith-Roach, told MPs that the UK is an 'increasingly challenging' place for medicine innovation. No new facts about AstraZeneca's investments or job losses are mentioned. The UK's R&D investment or the status of Emma Walmsley are not topics discussed in the recent developments.
These developments highlight a complex picture of the pharmaceutical industry in the UK, with some companies choosing to invest while others are reconsidering their commitments. The future of the industry in the UK remains uncertain, with industry watchers keeping a close eye on further developments.
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