(Reuters) – AstraZeneca (NASDAQ:) has warned it could move its vaccine production site from Britain to the United States as talks with the new Labor government over plans to cut state aid have stalled, it was reported the Financial Times Thursday.
British Chancellor of the Exchequer Rachel Reeves wants to reduce state provision for the company’s vaccine centre, which will reduce the previous government’s commitment from around £90 million to £40 million, the report said, citing sources.
The previous bid included up to £70 million in grants to develop a facility in Speke, Liverpool and £20 million in research and development support from the UK Health Security Agency, the Financial Times report said.
Production could take place in India, where the company has produced vaccines in the past, people briefed on the discussions told the newspaper.
A spokesperson for AztraZeneca said: “We are committed to capitalizing on the opportunities at Speke and are engaged in constructive discussions with the UK government.”
“We have no idea where the comments in some media come from and they do not appear to be based on facts. For example, there are no discussions in the US or India,” the spokesperson said.
“We are in positive discussions with AstraZeneca to support the implementation of this planned investment in Speke,” a Treasury spokesperson said.
The Sunak government in March planned to invest £650 million in the Anglo-Swedish drugmaker to boost research, development and production of vaccines.