Brexit prompts pharma giant investment pause

AstraZeneca has paused new investment in Cambridge until there is clarity about the UK’s withdrawal from the EU.

Andy Williams, Vice President for Cambridge Strategy and Operations, told the conference that the pharmaceuticals giant is ‘very much committed’ to the Cambridge area, where it has recently relocated its HQ from the North West of England but has stopped investment until it has more clarity about Brexit.

He said: “It’s very clear that the impact on the business from a Hard Brexit would be very negative, some might say disastrous in terms of access to medicine for patients.”

The company has invested tens of millions of pounds into establishing parallel facilities in Sweden so that the company can retain access to EU markets in the event of a Hard Brexit.

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Williams welcomes the Government’s commitment to increase R&D investment to 2.4% of GDP, the international average, up from the UK’s current level of 1.7%: “The real concern in the UK is if R&D is reduced and the science base is not sufficient: post Brexit that would be a significant challenge for the UK.”

James Palmer, Mayor of Cambridge and Peterborough Combined Authority, said that the underlying strength of the local economy means that the area will be able to ride out any Brexit downturn: “The biggest problem for businesses is not leaving or staying, it’s the uncertainty. They need to plan and at the moment Parliament is not giving any certainty. We’ve seen that the only deal is May’s deal or no deal. Other political parties are not being clear: the responsibility of Parliament is to act on behalf of the country and I’m not sure it’s doing that.”

Sian Nash, Associate Chief Operating Officer at the Wellcome Genome Campus, told delegates that it is taking new warehouse space to ensure that its supplies are not disrupted in the event of a Hard Brexit.

The genome mapping centre is lobbying the Government about the impact of restrictions on the free flow of labour between the UK and the EU, she said: “Scientists are constantly having to go to other cities for conferences, immigration is absolutely vital for us.”

Jeanette Walker, Director of Cambridge Science Park, agreed that immigration is the key issue arising for the organisation from Brexit. She said: “If companies are restricted on attracting talent, that will have major impact on their business. It’s certainly a major threat to the success of business on the science park.”

The Cambridgeshire and Peterborough Economic Growth Conference also heard how the city’s science parks are under pressure to create high-quality environments that will attract research talent from across the globe. Nash said the Wellcome campus’ latest planning application for a further 150,000 sq m of research space and new homes includes facilities like gyms and shops.

And Cambridge’s science park’s application for its latest extension includes proposals for a hotel, swimming pool and landscaped gardens with outdoor meeting rooms, Walker said: “We have to do everything we can to make that work environment exemplary. We are trying to help companies attract and retain talent by making the science park a place where people genuinely want to work.”

Walkers added that there is a lot of interest from Asian investors in the UK science and technology sector, pointing to Chinese backing for the science park’s bio-innovation centre which is due to open in April once its laboratories have been fitted out: “A lot of money from Asia is looking for a home in the UK and recognise the UK’s strengths in the science and technology sector.”

Addressing a question on the social implications of Cambridge’s growth, AstraZenca’s Williams said that many of those who had moved following the relocation of the company’s HQ had wanted to live in established neighbourhoods rather than new developments: “The number one concern for people from outside the area was schools. The assumption was that they would move to new housing but they wanted to move to established areas.”
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