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AstraZeneca chief warns group could withhold new drugs in Europe

Sir Pascal Soriot says countries will have to spend more on innovative medicines following US trade deal
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{"text":[[{"start":10.9,"text":"The chief executive of AstraZeneca has warned that the drugmaker could be forced to withhold new medicines in the UK and Europe if it did not secure higher prices, given the terms of its agreement with the Trump administration to lower costs for US patients."}],[{"start":25.700000000000003,"text":"Sir Pascal Soriot told the FT that European countries would have to spend more on innovative medicines or the Anglo-Swedish group would be left with no choice but to focus almost exclusively on the US market where it draws nearly half of its revenues. "}],[{"start":41.2,"text":"“It’s sad and it’s heartbreaking but we would have no choice. I have to take care of patients but I also have to take care of our shareholders and generating enough revenue so we can reinvest in our R&D and invest in new medicines,” Soriot told the FT in an interview. "}],[{"start":58.650000000000006,"text":"US President Donald Trump has put pressure on the sector to reduce prices for patients since returning to office. Over the past nine months, most global groups including AstraZeneca have announced agreements with the administration that compel them to lower some prices in the US, guaranteeing that the cost of certain drugs do not exceed those in Europe, Japan and Canada."}],[{"start":79.55000000000001,"text":"These so-called Most Favored Nation agreements have roiled the industry for months and prompted many companies to consider not launching new drugs in Europe in order to avoid price controls in the US."}],[{"start":91.15,"text":"The UK has already committed to increasing medicines spending across the NHS but it is unclear where the extra funding will come from. "}],[{"start":99.80000000000001,"text":"Soriot argued that while the UK government’s announcement represented “progress” it still fell short of what was needed, saying that Europe, including the UK, only spends about 0.4 per cent of GDP on innovative medicines while the US is closer to 0.8 per cent. "}],[{"start":116.80000000000001,"text":"“Forty-five per cent of our revenue is in the US,” he said. “[The] UK is 2 per cent, it’s the same for France, Spain. Why would you threaten 50 per cent of your revenue if you think you cannot get a reasonable price in the UK or France?”"}],[{"start":131.3,"text":"His comments came moments after ringing the opening bell at the New York Stock Exchange to celebrate the company’s direct listing on the bourse which was completed in February. Although AstraZeneca’s decision to list directly in the US has led to speculation that the company could withdraw from the London Stock Exchange, Soriot insisted that the company was committed to the UK."}],[{"start":151.75,"text":"“People should see this not as a negative but as a positive. If our company is more successful, the UK is more successful because we employ people and have a large R&D site in Cambridge,” he said. “It doesn’t affect our standing in London, we’re still in the FTSE Index and it remains the anchor to our share in the UK.”"}],[{"start":172.6,"text":"AstraZeneca announced in April that it would invest £300mn to complete the expansion of an R&D facility in Cambridge. The group also said it would build a new laboratory in the northern town of Macclesfield."}],[{"start":192.54999999999998,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1780745804_7891.mp3"}

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