AstraZeneca CEO contemplates relocating company's London stock exchange listing to the United States.
In a move that could deal a significant blow to the London Stock Exchange, pharmaceutical giant AstraZeneca is considering relocating its primary listing to the United States. The decision comes as a result of several key factors related to business strategy, regulatory concerns, and market dynamics.
AstraZeneca's CEO, Sir Pascal Soriot, has expressed his frustration with the UK's regulatory environment, particularly concerning the approval and pricing of new medicines by the National Institute for Health and Care Excellence (NICE). This has led to difficulties in bringing new products to market in the UK and has affected the company’s growth and innovation prospects.
Beyond regulatory issues, the move is seen as driven by broader business needs rather than simply pursuing a higher stock valuation. Soriot and company executives are concerned about the lack of robust commercial support for the life sciences sector in the UK, as well as restrictive pricing structures that hinder competitive global positioning.
The US stock market offers greater liquidity and investor interest, with AstraZeneca’s US depositary receipts already experiencing much higher turnover than its London-listed shares. Moving to the US could provide easier access to capital and a larger pool of investors. There are even preliminary discussions about potentially re-domiciling the company to the US, which would follow the trend of several UK-based firms seeking to list in more supportive environments.
The potential departure of AstraZeneca, currently the most valuable company on the London Stock Exchange with a market cap of £160bn, would have a significant impact on the London Stock Exchange, intensifying concerns about the attractiveness and health of the UK’s capital markets.
However, board members and the UK government are expected to push back against a potential move of Astrazeneca's listing from the UK. Sir Pascal Soriot has denied a rift with the Labour government earlier this year after abandoning plans for a £450m vaccine factory. No comment has been received from the Labour government regarding Soriot's recent statements about the potential move of Astrazeneca's listing.
The woes of the London Stock Exchange have continued into 2025, with a combination of takeovers and delistings leading to a struggling market. Last month, three billion-pound swoops resulted in foreign giants snapping up London-listed assets, and Paddy Power owner Flutter and tech darling Darktrace were among the companies that left the London Stock Exchange in 2024. London Stock Exchange chief Julia Hoggett has suggested a new "Tell Sid" advertising campaign to boost investment in UK assets and crowd in further liquidity to maintain listings. LSEG’s former boss Xavier Rolet has criticized stewards of UK capital markets for focusing on "gimmicks and quick headline-grabbing fixes" to liquidity levels.
AstraZeneca declined to comment on the matter when approached by City AM. The decision is expected to be made in the coming months, with a potential transfer of the primary listing to the US slated for 2025.
AstraZeneca's CEO, Sir Pascal Soriot, is considering reassessing the company's financial position, potentially investing in the United States markets due to concerns about regulatory issues, limited commercial support, and restrictive pricing structures in the UK industry. The move could lead to a larger pool of investors, easier access to capital, and a more supportive environment for the life sciences sector, following the trend of several UK-based firms.
The relocation of AstraZeneca's primary listing to the US could have a significant impact on the London Stock Exchange, further affecting its attractiveness and the health of the UK's capital markets, as the company is currently the most valuable on the exchange with a market cap of £160bn.
