AstraZeneca Pauses £200 Million Cambridge Expansion, Raising Concerns for UK Investment

TDT | Manama

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British pharmaceutical giant AstraZeneca has halted plans for a £200-million ($271-million) expansion of its Cambridge research facility, marking the latest setback for foreign investment in the UK.

The move follows the company’s January decision to abandon a £450-million vaccine manufacturing plant in northwest England. It also comes just days after US pharmaceutical firm Merck scrapped plans for a $1.4-billion research centre in Britain, citing the country’s “lack of investment” in the sector and concerns over drug pricing.

AstraZeneca confirmed the pause in a brief statement on Friday, saying its management “constantly reassess the investment needs of our company and can confirm our expansion in Cambridge is paused,” without providing further details.

The decision is a new challenge for Prime Minister Keir Starmer’s Labour government, which is under pressure to stimulate Britain’s slowing economy. Critics argue that high taxes and limited subsidies are discouraging foreign investment across multiple industries.

Global pharmaceutical companies have also faced growing pressure from the United States. Earlier this year, US President Donald Trump urged firms to invest domestically, warning that production abroad could face heavy tariffs. AstraZeneca itself announced in July plans to invest $50 billion in the US by 2030, including a multi-billion-dollar manufacturing facility in Virginia, along with expanded research and production operations.

The pause on the Cambridge project highlights the ongoing difficulties the UK faces in retaining large-scale foreign investment in a competitive global market.