AstraZeneca’s Speke U-turn deals blow to Government’s life sciences ambition
3 Feb 2025
AstraZeneca’s shock reversal of its plans to expand vaccine manufacturing at itsSpeke plant on Merseyside has put an end to hopes of the proposed £450 million investment in the site.
The announcement has proved a major embarrassment to the Government, as the statement was made public just days after Chancellor Rachel Reeves cited the life sciences sector as essential to her proposals for stimulating economic growth.
Both parties admitted that the main sticking point had been the level of state funding offered which appeared to have differed from the original proposals made by the previous Sunak administration and then Chancellor Jeremey Hunt. Negotiations to find a solution then contributed to further delays.
The investment would have seen a substantial increase in the Merseyside operation, centred on vaccine development and marked a further stage in AstraZeneca’s investment in its multiple UK sites.
In all, the firm operates five locations including its headquarters in London’s Knowledge Quarter and its administrative and sales operation in Luton. The other three, focused on R&D and production, are Speke on Merseyside, plus Cambridge and Macclesfield.
Its newest location, Macclesfield, opened recently following a £380 million investment in 2021. That accommodates an estimated 4,700 employees and also serves as the company’s European packing centre.
The company also committed last year to investing £200 million towards expanding its 4,000 strong Cambridge operation, which also serves as home to DISC, its global research and development Discovery Centre.
Speaking in March last year when the proposed Speke investment was first announced, AstraZeneca CEO Sir Pascal Soriot said:
“AstraZeneca’s planned investment would enhance the UK’s pandemic preparedness and demonstrates our ongoing confidence in UK life sciences. We will continue to support the UK in driving innovation and patient access, building on the strong foundations which have been put in place.”
The plan had been for Speke to work closely with the UK Health Security Agency (UKHSA) developing and evaluating vaccines – using technology from both Speke and the UKHSA’s Vaccine Development Evaluation Centre (VDEC) at Porton Down.
While AstraZeneca has remained committed to its present level of operation, the reversal of the much-heralded expansion plan has been a political as well as an economic embarrassment for the Government, with former Chancellor Hunt, who jointly brokered the initial deal, calling on Reeves to ‘pick up the phone’ to AstraZeneca chief Soriot.
Pic: Shutterstock
