Latest news with #Soriot
Business Insider
03-07-2025
- Business
- Business Insider
British Drugs Giant AstraZeneca Pondering Stock Market Shift to the U.S.
Pharmaceutical giant AstraZeneca (AZN), the U.K.'s most valuable company, is considering moving its stock market listing to the U.S. Don't Miss TipRanks' Half-Year Sale Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. U.K. Restrictions Chief Executive Sir Pascal Soriot, as reported by The Times, has spoken privately about his desire to leave the FTSE 100 behind and head stateside. Soriot is said to be concerned about how quickly Europe is falling behind the U.S. and China when it comes to medicine innovation. He is also known to be frustrated by the restrictions on approvals of new drugs and treatments by the state-owned National Institute for Health and Care Excellence, or NICE – such as breast cancer drug Enhertu. AstraZeneca is no stranger to the U.S., which accounts for over 40% of its $54 billion group revenues. It recently ramped up investment there both to escape tariff hits and as a move away from those U.K. and European restrictions. London Loss The loss of the firm, with a market value of around £160 billion, would be a major blow to the London stock market and will likely meet opposition from some shareholders and the U.K. government. It would follow on the heels of other firms shifting their primary listings to the U.S., such as building materials supplier CRH (CRH). 'America is important to its growth strategy and it could become an even bigger cog in the wheel,' said Dan Coatsworth, investment analyst at AJ Bell. 'The CEO seems frustrated at the lack of financial support to open new laboratories and manufacturing facilities in Europe and might see a full U.S. stock listing as a stepping stone to receiving better treatment stateside.' Is AZN a Good Stock to Buy Now?
CNBC
02-07-2025
- Business
- CNBC
London stock market could weather its biggest blow yet if AstraZeneca exits
Pressure is piling on London's stock exchange, with reports that British pharma giant AstraZeneca may move its listing to the U.S. delivering yet another blow this week. CEO Pascal Soriot is considering moving the company's stock listing from London to the U.S., British newspaper The Times reported on Tuesday afternoon, citing anonymous sources. Soriot's frustrations with the U.K.'s regulatory environment — particularly rules around new medicine approvals and drug pricing systems — are said to be driving the move. AstraZeneca declined to comment on the Times report. The company's exit from the U.K. market would spark a major index re-weighting, given AstraZeneca is the most valuable business listed on London's FTSE 100. AstraZeneca's market cap was £161.2 billion ($221.1 billion) as of Tuesday's closing price, according to LSEG data. AstraZeneca's potential transatlantic move would add to concerns around London's weakening status as a global financial hub. A number of companies have delisted from the London market or reconsidered plans to float shares in the city over the past year. Toni Meadows, head of investment at London's BRI Wealth Management, labeled AstraZeneca's rumored listing considerations as "disappointing" for the U.K. equity market — but he conceded that "it is not surprising" given that it would form the latest development in a wider established trend. Earlier this year, reports emerged that Chinese fast fashion giant Shein was looking to list in Hong Kong instead of London, when it goes public. Last week, news agency Reuters reported that the company was planning to file confidentially for a Hong Kong IPO. Metals investor Cobalt Holdings, meanwhile, confirmed to CNBC last month that it had scrapped plans for a London IPO, while British fintech giant Wise announced in June that it was moving its primary listing from London to New York. Kristo Kaarmann, Wise's CEO and co-founder, said in a statement at the time that the move would help raise awareness of the company in the U.S., while giving the firm better access to "the world's deepest and most liquid capital market." Companies listed in London have historically had much lower valuations than their Wall Street counterparts. Research from British investment manager Rathbones last year showed that the forward price-to-earnings ratio for U.K. stocks was 32% lower than those listed in the U.S. on a like-for-like basis. On the flipside, the Financial Times reported last week that Norwegian software giant Visma had chosen London for its upcoming debut on the public market. "Large and important companies like AstraZeneca are seeking a valuation uplift from exposure to a wider investor base and they will get that from moving to a US listing," BRI's Meadows told CNBC via email on Wednesday. "The trend to move listing, or the stream of takeovers for UK listed stocks, highlights value in the UK equity market, but it does nothing to encourage a new supply of companies listing here to support the future standing of the index in a Global context," Meadows added. Claire Trachet, founder of M&A advisory Trachet, said AstraZeneca shifting its listing to New York would represent "a memorable loss" for the London Stock Exchange. "Given the complexity of the company, this isn't simply because of liquidity or valuation advantages often cited by departing firms, rather a trifecta of underperforming capital markets, regulatory constraints, and misaligned incentives that make it harder to scale and reward innovation at home," she told CNBC by email. Trachet added that London-listed companies with a combined value in excess of $100 billion had already made the move to New York in recent years — and AstraZeneca's departure alone would more than double that figure. "The potential move makes it painfully clear to global markets that the UK is losing its edge on the needs of world-class, scale-driven companies," she said. "This isn't an isolated story — and that's the biggest issue. It's part of a broader shift, where founders and boards are increasingly looking to the US for deeper capital, stronger support, and a more ambitious investor base." Tom Bacon, a London-based partner at global law firm BCLP — which has a division dedicated to M&A and corporate finance — labeled reports of AstraZeneca's Soriot's desire to shift away from London "very worrying." "I think this should sound the alarm for the UK government that they need to do more both to support the city and our stock market together with our critical industries like life sciences and pharmaceuticals," he said. Dan Coatsworth, investment analyst at AJ Bell, on Wednesday said that AstraZeneca's reported plans appeared to be driven by business needs rather than chasing a higher valuation — but he added that moving the company's listing across the Atlantic "won't be an easy move to pull off." "Unlike many other UK market 'defectors' with a dominant US shareholder base like CRH and Flutter, AstraZeneca has a more geographically diverse pool of investors," he explained in an email. However, Coatsworth noted that AstraZeneca generates around 42% of its sales from the U.S., and already has plans to increase its operational footprint in the country. Earlier this year, CEO Soriot told CNBC AstraZeneca was "very committed to the United States," where the company has two large research and development centers. AJ Bell's Coatsworth told CNBC that AstraZeneca's CEO could also see a full U.S. stock listing as a "stepping stone to receiving better treatment Stateside." European pharmaceutical companies are facing uncertainty around their future in the American market, where U.S. President Donald Trump has threatened to impose sector-specific tariffs on drug imports. While the industry was exempted from Trump's so-called reciprocal tariffs plans when they were unveiled in April, the White House leader has since placed the sector under investigation by the U.S. Commerce Department, warned tariffs on pharma are "coming soon," and signed an executive order directing medicine manufacturers to lower the price of some drugs in line with costs paid overseas.
Yahoo
01-07-2025
- Business
- Yahoo
AstraZeneca stock rises amid reports CEO favors US listing move
-- AstraZeneca PLC (NASDAQ:AZN) ADRs rose 2.2% following a Times report that CEO Sir Pascal Soriot has privately expressed interest in moving the company's stock market listing to the United States. According to The Times, citing sources familiar with his thinking, Soriot has discussed his preference for relocating the FTSE 100 company's listing on multiple occasions and has even considered moving AstraZeneca's domicile. However, such a move would likely face resistance from parts of the board and the British government, which reportedly has not been informed of these discussions. Soriot, who has led the pharmaceutical giant since 2012, has publicly voiced concerns about Europe falling behind the US and China in developing innovative medicines. These two markets represent AstraZeneca's largest revenue sources globally. The CEO is reportedly "deeply frustrated" with the UK's operating environment, particularly regarding restrictions on new medicine approvals by the National Institute for Health and Care Excellence (Nice). Specific concerns include approval challenges for drugs and pricing constraints under the NHS sales rebate scheme. As Britain's most valuable public company, any potential move by AstraZeneca would represent a significant shift in the UK corporate landscape. The company has become a cornerstone of the British pharmaceutical industry under Soriot's leadership over the past decade. Related articles AstraZeneca stock rises amid reports CEO favors US listing move INmune slides again as Scotiabank, RJ cut ratings after Alzheimer's drug miss Wolfe Research refreshes high-conviction ideas heading into H2 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
01-07-2025
- Business
- Bloomberg
AstraZeneca Rises on Report CEO Wants to Move Listing to US
AstraZeneca Plc 's shares rose after a report that Chief Executive Officer Pascal Soriot wants to move the British drugmaker's stock listing to the US, in what would be a major blow to the UK's equity markets. Soriot has also discussed moving AstraZeneca's domicile, the Times said, citing people familiar with the matter it didn't identify. The executive is frustrated with the UK's regulatory regime for drugs and is concerned the country is falling behind the US and China, it said.
Yahoo
01-05-2025
- Business
- Yahoo
AstraZeneca CEO calls for increased European investment in pharma
AstraZeneca CEO Pascal Soriot has urged European governments to increase investment in pharmaceutical innovation, warning of a growing imbalance between the US and Europe, which could threaten the region's long-term competitiveness in life sciences. Speaking during the company's Q1 2025 earnings call, Soriot said, 'Investment in innovation in pharmaceuticals in Europe has to go up.' He pointed to a decline in Europe's share of healthcare budgets allocated to innovative medicines, singling out the UK as an example. 'That share has been declining steadily over the last number of years, down to 7% of the healthcare budget being allocated to innovative medicines in the UK. What can you do with 7% of your healthcare costs allocated to innovating medicines? Of course, not much.' Soriot argued that to maintain competitiveness and ensure timely patient access to new therapies, European countries – particularly higher-income ones – must rebalance their healthcare spending. The comments come amidst increasing concern among European pharmaceutical companies about the region's ability to attract R&D investment. On 8 April, the European Federation of Pharmaceutical Industries and Associations (EFPIA) warned that the EU risks losing over €100m in planned capital and R&D investments between 2025 and 2029, unless urgent reforms are made to its regulatory and investment environment. Additionally, the CEOs of Novartis and Sanofi wrote a letter calling on the EU to increase drug prices towards the much higher levels paid by the US, saying it will encourage innovation. The letter, published in the Financial Times on 23 April, said that the European Commission (EC) should set a spending target for medicines and vaccines to 'fairly reward innovation'. Soriot emphasised the broader economic and strategic implications for Europe. 'I really think the key piece is that Europe, at least the richer countries in Europe, have to contribute more to pharmaceutical innovation, just like they have to contribute more to their own defence. It's a relocation of GDP… that would enable a lot of accelerated access, and suddenly a pricing level that would enable [rebalancing] the funding of that innovation between the US and Europe.' He added that while tariff-related uncertainties are a short-term concern for the industry, the more critical mid- to long-term issue is the structural gap in innovation funding. 'People think it's a question of price sometimes – no, it's also a question of delay. In many countries in Europe, patients have to wait two years, three years to get access, which [is] very restrictive.' AstraZeneca reported $13.6bn in Q1 revenue, a 10% year-on-year increase in constant currencies, driven by strong sales of cancer and biopharmaceutical products. The company reiterated its commitment to expanding in the US, where it currently derives about 40% of its sales. Soriot said AstraZeneca is making 'excellent progress' towards its goal of reaching $80m in total revenue by 2030. 'Our company is firmly committed to investing and growing in the US, and we continue to benefit from our broad-based source of revenue and global manufacturing footprint, including eleven production sites in the US… Additionally, we have even greater US investment in manufacturing and R&D planned,' Soriot added in the 29 April statement accompanying the earnings. Industry-wide, EFPIA has identified €16.5bn in investments considered at risk of relocation from the EU in the next three months alone. The group cited the US's lead over Europe in investor-critical metrics, including access to capital, intellectual property protection, regulatory speed, and financial rewards for innovation. Soriot concluded, 'I believe, I hope that we [industry] can continue working together to address these two issues,' referring to tariffs and the imbalance between Europe and the US. Navigate the shifting tariff landscape with real-time data and market-leading analysis. Request a free demo for GlobalData's Strategic Intelligence "AstraZeneca CEO calls for increased European investment in pharma" was originally created and published by Pharmaceutical Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
