AstraZeneca CFO on Tariffs, Drug Innovation, and UK Investment

Impact of Tariffs on Pharmaceuticals

• ⚠️ Tariffs on imported medicines could impact both the bottom line and drug development, as essential medicines are involved.
• 💡 The complexity of manufacturing and supply chains means that moving them is not a simple lift-and-shift operation due to regulatory and quality control requirements.
• 🇺🇸 For AstraZeneca, the vast majority of products sold in the US are manufactured domestically, with segregated manufacturing in China, the US, and Europe.
• 🔄 The company is already working to rebalance supply chains from Europe to the US for minority products that are imported, in anticipation of potential tariffs.

Investment in Drug Innovation

• 🌍 AstraZeneca's CEO, Pascal Soriot, has highlighted an imbalance in funding for drug innovation, with too much investment concentrated in the United States.
• 🏥 The concept of health sovereignty is important for ensuring patients in Europe have timely access to the best medicines and for Europe to invest more in innovation and R&D.
• 📈 Increased investment in innovation is expected to attract more R&D and manufacturing investments to Europe.

UK Investment and Access to Medicines

• 🇬🇧 AstraZeneca has not yet seen benefits from the UK government's focus on economic growth and investment attraction.
• 🚫 A key innovative drug for breast cancer, Enhertu, is not reimbursed in the UK, despite significant R&D investment.
• 💔 The lack of patient access to medicines in a country where R&D studies are conducted is described as disappointing.

Supply Chain Diversification and Costs

• 🏭 While it's hard to quantify efficiency, segregated supply chains can reduce shipping costs.
• ⚙️ AstraZeneca has additional capacity at its US manufacturing sites, meaning that shifting some manufacturing from Europe to the US would require only incremental investment.
• 💉 AstraZeneca does not supply childhood or adult vaccines and therefore has no business concern regarding the decline in vaccine uptake, though it is acknowledged as a public health issue.