AstraZeneca, Britain’s most valuable listed company, is considering moving its stock market listing to the United States. The pharmaceutical giant’s chief executive, Pascal Soriot, has privately expressed his desire to shift the listing to New York. Soriot has also discussed the possibility of relocating AstraZeneca’s domicile.
The company’s share price rose by 2.8% on Tuesday following the news. A move by AstraZeneca would be a significant blow to the London Stock Exchange, which has already faced several departures by companies seeking higher valuations elsewhere. The UK government is likely to oppose such a shift, although it lacks the formal power to block the move.
AstraZeneca declined to comment on the matter. The government is currently negotiating with the pharmaceutical industry, including AstraZeneca, over rebates that drug companies must pay on sales of new medicines to the NHS under a voluntary agreement.
AstraZeneca’s potential shift to U.S.
Since joining AstraZeneca in October 2012, Soriot has overseen the tripling of the company’s market value. The Cambridge-based firm now boasts a market value of £157 billion, surpassing oil giant Shell and banking firm HSBC. In November, Soriot emphasized AstraZeneca’s ambitions to expand further in the U.S., stating, “We want to see even more growth in the US over the next few years as part of our 2030 ambition.” He highlighted the importance of the U.S. market in supporting innovation and driving growth.
The U.S. is the world’s largest pharmaceutical market with the highest per capita spending on medicines, despite having a lower life expectancy compared to several other countries. UK executives have often pointed out that their companies are undervalued compared to their American counterparts. Soriot’s compensation has increased in line with AstraZeneca’s market value, with him being the highest-paid executive for two consecutive years, receiving £16.85 million for 2023, up from £15.3 million in 2022.
This development comes as companies re-evaluate their stock listings and operations. Pharmaceutical stocks recently slid as former U.S. President Donald Trump vowed to cut US prescription drug prices, and AstraZeneca announced a $2.5 billion investment in drug research and manufacturing in Beijing earlier this year.
