AstraZeneca may relocate its vaccine manufacturing from the UK to the US after negotiations with new labour government fail

AstraZeneca has indicated it may consider relocating its vaccine manufacturing unit from the UK to the US, following a stalemate in discussions with the new Labour government over plans to cut state aid, according to the Financial Time.

As per reports, Britain’s finance minister Rachel Reeves aims to decrease state provisions for the company's vaccine centre, which will be a reduction in the previous administration’s commitment from about 90 million pounds to 40 million pounds. It also stated that according to the commitment, UK Health Security Agency had to give 70 million grants to build a facility in Speke, Liverpool and 20 million pounds in research and development.

It is speculated that manufacturing could take place in India, where the company has produced vaccines previously.

AstraZeneca spokesperson commented "We are committed to pursuing the opportunity at Speke and are in constructive discussions with the UK government." The spokesperson further added, "We have no idea where the comments in some media come from and they do not seem to be based on facts. As an example, there are no discussions in the US or India."

A UK treasury spokesperson said, "We are in positive discussions with AstraZeneca to support the delivery of this planned investment in Speke."

In March, the Sunak administration had planned to invest 650 million pounds in the Anglo-Swedish drugmaker to enhance research, development and manufacturing of vaccines.
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