AstraZeneca backs US and China – however new UK vaccine manufacturing facility hangs within the steadiness

AstraZeneca said it is in China ‘for the long haul’ and outlined billions of pounds of investment in the US – but a new vaccine factory in the UK hangs in the balance.

The pharma giant’s chief executive Pascal Soriot threw his weight behind its Chinese business yesterday.

But he admitted that the firm is in the dark and has ‘very little information’ about the arrest of its boss in the region.

Investment: Astra boss Pascal Soriot (pictured) threw his weight behind its Chinese business despite admitting the firm has ‘very little information’ about the arrest of its boss in the region

AstraZeneca also said it would pour £2.7billion into the US to expand its research and manufacturing sites.

The commitment to China and the US came as AstraZeneca said it was locked in talks with ministers about whether it will go ahead to build a £450million vaccine factory in Liverpool.

‘We’re still in discussions with the Government to figure out what type of incentives there may be,’ said finance boss Aradhana Sarin.

The hold-up over a major project in the UK – at the same time as AstraZeneca presses ahead with investment in the US and China – is likely to raise fresh concerns over Labour’s stewardship of the economy.

The drugs group was previously in talks with the Conservative government about state funding for the factory and expected more than £90m of support for the project.

But Labour officials reportedly have been trying to reduce this to £40million, sparking a debate between the two sides.

The company stressed plans for the factory are not on hold but were being reviewed in light of the ‘incentives’ on offer.

AstraZeneca also announced the multi-billion pound investment in the US. The firm said it plans to open a research and development centre in Massachusetts as well as a manufacturing plant in Maryland.

Further afield, there are plans to expand its manufacturing capacity on the west and east coasts as well as more specialised factories in Texas.

‘Our multi-billion-dollar investment reflects the attractiveness of the business environment together with the quality of talent and innovation capabilities here in the United States,’ Soriot said.

The investment forms part of the group’s plans to boost its annual sales to £63billion by the end of the decade, a large share of which is expected to come from the US market.

AstraZeneca also remained committed to China, where it is the country’s largest pharmaceutical firm employing around 18,000 staff.

This was despite a widening probe into its Chinese employees by local officials which since last week has wiped over £16billion off its value.

Soriot said the firm was taking the situation ‘very seriously’ and would ‘fully cooperate’ with Chinese authorities if approached. The company itself is not under investigation.

Last week AstraZeneca revealed that the head of its China business, Leon Wang, had been detained by authorities in the city of Shenzhen.

Around 100 former employees have been sentenced in a separate case based on allegations that patient test results were falsified to receive funds from China’s state-run health insurance system.

The pharma giant, meanwhile, yesterday upgraded its forecasts for 2024 after reporting that pre-tax profits for the third quarter of the year had risen 11 per cent to £1.4billion while sales grew 18 per cent to £10.6billion.