Losing British drug giant AstraZeneca from the London Stock Exchange would be a “devastating blow”, Tory former chancellor Norman Lamont has said as he warned the Government against using pharma firms as “cash cows”.
Speaking at Westminster, the Conservative peer argued such companies should be treated as “valuable investments to be encouraged”.
Lord Lamont of Lerwick raised his concern following reports AstraZeneca, which with an estimated market worth of more than £160 billion is the most valuable firm on the top-flight FTSE 100 index, is looking at moving its listing to the US.
The potential move would fuel worries over London’s status as a global financial centre.
It comes after fintech Wise announced plans last month to transfer its primary equity listing across the Atlantic.
Earlier this year, AstraZeneca pulled out of a planned £450 million investment in a vaccine manufacturing plant in Merseyside last week, saying Labour failed to match the previous government’s offer of financial support.
The firm had also been unhappy after the NHS spending watchdog refused to approve a life-extending breast cancer drug it made in a dispute over the cost.
The decision reversed an announcement made by then-chancellor Jeremy Hunt that would have seen the pharmaceutical company expand its existing facility in Speke.
The collapse of the deal came as a blow to the Government as it seeks to stress its commitment to growing the economy and making Britain more attractive to international investors.
Pressing the Government in Parliament, Lord Lamont said: “The loss of AstraZeneca, were it to happen, would be a devastating blow to the London Stock Exchange.
“Is it not therefore very important, if we are to retain the listings, that the Government have a supportive policy for life sciences in particular?
“Is it not regrettable, first, that the life sciences review has not yet appeared and, secondly, that the Government refused to back the vaccine plant at Speke near Liverpool?
“The Government also increased the rebate payable by pharma companies from drug sales from 15% to 22% – a stealth increase if ever there was one.”
He added: “Is it not important that, if we want to retain the listings, which will mean retaining the research, development and employment, we have a proper strategy with these companies and do not just regard them as cash cows but valuable investments to be encouraged?”
Responding, Treasury minister Lord Livermore said; “I fundamentally agree with the underlying point he made about the importance of investing in and having the right environment for life sciences companies in this country. They are incredibly important to us. It is why they are fundamental to our industrial strategy.”
