Pharmaceutical giant AstraZeneca (AZN), the U.K.’s most valuable company, is considering moving its stock market listing to the U.S.
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U.K. Restrictions
Chief Executive Sir Pascal Soriot, as reported by The Times, has spoken privately about his desire to leave the FTSE 100 behind and head stateside.
Soriot is said to be concerned about how quickly Europe is falling behind the U.S. and China when it comes to medicine innovation. He is also known to be frustrated by the restrictions on approvals of new drugs and treatments by the state-owned National Institute for Health and Care Excellence, or NICE – such as breast cancer drug Enhertu.
AstraZeneca is no stranger to the U.S., which accounts for over 40% of its $54 billion group revenues. It recently ramped up investment there both to escape tariff hits and as a move away from those U.K. and European restrictions.
London Loss
The loss of the firm, with a market value of around £160 billion, would be a major blow to the London stock market and will likely meet opposition from some shareholders and the U.K. government.
It would follow on the heels of other firms shifting their primary listings to the U.S., such as building materials supplier CRH (CRH).
“America is important to its growth strategy and it could become an even bigger cog in the wheel,” said Dan Coatsworth, investment analyst at AJ Bell. “The CEO seems frustrated at the lack of financial support to open new laboratories and manufacturing facilities in Europe and might see a full U.S. stock listing as a stepping stone to receiving better treatment stateside.”
Is AZN a Good Stock to Buy Now?
On TipRanks, AZN has a Strong Buy consensus based on 6 Buy ratings. Its highest price target is $97. AZN stock’s consensus price target is $86 implying a 20.35% upside.
