UK Pharma Faces Challenges as astrazeneca Eyes New York, GlaxoSmithKline Searches for Leader
Big pharmaceutical companies in the UK were already facing difficulties before AstraZeneca announced it would list its shares in New York, a significant setback for London. Meanwhile, GlaxoSmithKline – the second largest British drug maker after AstraZeneca – is looking for a new CEO after Emma Walmsley surprised the industry with her early departure, eight years after taking the position.
These two announcements, made on the same day, have caused a stir in London’s business world. This could be a turning point – but perhaps not for the better.
Before today, the UK health sector faced two main problems. First, there’s the ongoing disagreement over how much the National Health Service (NHS) pays for drugs. Companies believe the current “voluntary” agreement places heavy burdens and high costs on them.
At the same time, Donald Trump continues too threaten the sector, warning of tariffs if drug companies don’t start making more products in the United States. The US market is the largest for these companies, and they currently have significant pricing power there.
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Against this backdrop,the UK’s leading biopharmaceutical company is heading to New York.According to a recent statement: “AstraZeneca ‘seeks to transfer the listing of its shares to a global stock exchange, with the aim of attracting international investors and enhancing its position as a unified global company.'”
In simpler terms: currently, large American investors interested in AstraZeneca can only buy “American deposit receipts,” wich aren’t favored by major investment firms. A direct listing in New York would be much more appealing.
“The implementation of a global listing will allow us to reach a broader group of global investors, and it will make it more attractive for all our shareholders to participate.”