AstraZeneca exit is a frightening prospect for the City and the government
It’s a threat that will send a shiver down the spine of Downing Street and shake the City of London to its core.
Even the notion that AstraZeneca (AZ) – the UK’s most valuable listed company – is thinking of upping sticks and switching its stock market listing to America is a frightening prospect on many levels.
After all, if your biggest firm departs for Wall Street, what message does it send to an already bruised London stock market that has struggled to find its way since the UK’s vote to leave the European Union?
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The timing of the report in The Times that Pascal Soriot, the pharmaceutical company’s long-standing chief executive, is considering his own Brexit for the company, will not be lost on anyone.
The Treasury is under severe strain and the Starmer government, apparently focused on compromise given its welfare reform U-turns, bruised.
Ministers have been scrambling to get the support of business back, after a budget tax raid that has added to the cost of employing people in the UK, by launching a series of strategies to demonstrate a growth-led focus.
Mr Soriot’s reported shift is the culmination of years of frustration over UK tax rates and support for business – though it could also remove a focus on his own remuneration as the highest-paid director of a UK-listed firm.
Pascal Soriot has run AZ since 2012
AZ has its own gripes with Labour.
In January, the company cancelled a planned £450m investment in a vaccine factory on Merseyside, accusing the government of reneging on the previous Conservative administration’s offer of financial aid.
At the same time, it has been rebuilding its presence in the United States.
That speaks to not only a home market snub but also the election of a US president intent on protecting, as he sees it, America-based companies and jobs.
Donald Trump is threatening 25% tariffs on all pharma imports.
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AZ has already promised a $3.5bn (£2.6bn) investment in US manufacturing by the end of 2026.
It has also rejoined the leading US drug lobby group, bolstering its voice in Washington DC.
There are sound reasons for bolstering its US footprint; more than 40% of AZ’s revenues are made in the world’s largest economy. Greater US production would also shield it from any duties imposed by Mr Trump and any MAGA successor.
Since Brexit, complaints among UK stock market constituents have been of low valuations compared to peers (with a weak pound also leaving them vulnerable to takeovers), weaker access to capital and poor appetite for new listings.
Wise, the money transfer firm, became the latest UK name to say that it intends to move its primary listing to the US just last month.
Shein had been exploring a London flotation until it was blocked. Pic: Europa Press via AP
If followed through, it would tread in the footsteps of Flutter Entertainment and the building equipment suppler CRH – just two big names to have already left.
London was snubbed for a listing by its former chip-designing resident ARM back in 2023.
An initial public offering by Shein, the controversial fast fashion firm, had offered the prospect of the biggest flotation for the UK in many years but that was blocked by the Chinese authorities.
Efforts to bolster the City’s appeal, such as through the Financial Conduct Authority’s overhaul of listing rules and the creation of pension megafunds to aid access to capital, have also been boosted in recent months by investors in US companies taking a second look at comparatively low valuations in Europe.
Market analysts have charted a cash spread away from the US as a hedge against an erratic White House.
The Times report suggested that Mr Soriot’s plans were likely to face some opposition from members of the board, in addition to the UK government.
The City of London has faced a series of challenges since Brexit Pic: iStock
AstraZeneca has not commented on the story. Crucially, it did not deny it.
But a government spokesperson said: “Through our forthcoming Life Sciences Sector Plan, we are launching a 10-year mission to harness the life sciences sector to drive long-term economic growth and build a stronger, prevention-focused NHS.
“We have already started delivering on key actions, from investing up to £600m in the Health Data Research Service alongside Wellcome, through to committing over £650m in Genomics England and up to £354m in Our Future Health.
“This is clear evidence of our commitment and confidence in life sciences as a driver of both economic growth and better health outcomes.”
Governments don’t comment on stories such as these, but you can bet your bottom dollar that the departure of your biggest firm by market value is not the message a government laser-focused on growth can afford to allow.
The first-ever Capture case has been delayed at the Court of Appeal as the Post Office asks for an extension to respond, Sky News has learned.
Pat Owen, a former sub postmistress who has since passed away, was convicted of stealing in 1998 based on evidence from computer software.
The system, known as Capture, was used in up to 2,500 branches in the 1990s, before the infamous Horizon system was introduced.
Hundreds of sub-postmasters were wrongfully convicted between 1999 and 2015 as part of the Horizon scandal.
Earlier this year, Sky News unearthed a 1998 report showing the Capture software was also faulty.
That report, commissioned by the solicitors acting for Mrs Owen in 1998, was served on the Post Office and may never have been seen by the jury in her case.
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‘All we want is her name cleared’
Ms Owen was given a suspended prison sentence and fought to clear her name subsequently – but died in 2003.
Her case was referred by the Criminal Cases Review Commission (CCRC) to the Court of Appeal in October.
The Post Office had until 5 December to respond to papers put forward by Mrs Owen’s defence team but they have now asked for an extension until 30 January.
Ms Owen’s daughter, Juliet Shardlow, described the family’s suffering at the lengthening wait.
“I need to emphasise the profound impact the ongoing delay is having on our family,” she said.
“The continuous uncertainty only compounds our heartache, stress, and anxiety.
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“It has become the last thing I think about before I go to sleep and the first thing when I wake up.
“We have waited 27 years for justice, and this additional wait feels never-ending.”
Ms Owen’s case is the first time a conviction based on Capture has reached the Court of Appeal since the scandal was exposed.
Read more from Sky News:
Corporate manslaughter charges considered in Post Office scandal
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Lawyers have said that if Ms Owen is exonerated posthumously, it may “speed up” the handling of others.
CCRC chair Dame Vera Baird also told Sky News in the summer it could be a “touchstone case” for other victims.
The CCRC is also continuing to investigate around 30 other “pre-Horizon” convictions.
A Post Office spokesperson said: “We have sought an extension of time to fully consider and respond to the CCRC’s Statement of Reasons in Ms Owen’s case.
“We deeply regret the impact our request for further time will have on Ms Owen’s family.
“We have a duty to carefully consider the evidence presented in the Statement of Reasons submitted by the CCRC and do everything we can to fully assist the Court when it considers this conviction.”
Meanwhile, the first-ever redress scheme for victims of the Post Office Capture IT scandal was launched this autumn.
The Capture Redress Scheme will provide payments of up to £300,000, and more in “exceptional” cases, to former postmasters who suffered financial losses.
OpenAI has signed its first major licensing deal to bring well-known characters to life on its Sora video generation tool.
The company said the agreement with Walt Disney was part of a push to ensure the rights of creators in the generative artificial intelligence (AI) space amid growing concerns over copyright, fakes and misinformation.
It forms part of a $1bn Disney investment in OpenAI, that will see the entertainment firm roll out ChatGPT to its staff and grow its AI capabilities.
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The initial three-year licensing deal will allow Sora users to generate and share videos based on more than 200 Disney, Marvel, Pixar and Star Wars characters.
These include Mickey Mouse, Cinderella and Luke Skywalker.
Sora allows people to quickly create realistic clips based merely on text prompts.
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Disney and OpenAI said they were committed to responsible use of AI amid the backlash from critics who have pointed to widespread misuse of generative AI in the social media space – a practice known as AI slop.
Some have depicted fake messages from celebrities and even used the dead.
OpenAI CEO Sam Altman said: “This agreement shows how AI companies and creative leaders can work together responsibly to promote innovation that benefits society, respect the importance of creativity, and help works reach vast new audiences.
His counterpart at Disney, Bob Iger, added that the partnership would “extend the reach of our storytelling through generative AI, while respecting and protecting creators and their works”.
As part of the deal, some user-generated Sora videos will be made available on the Disney+ streaming service.
Dan Coatsworth, head of markets at AJ Bell, said of the tie-up: “It’s a win-win situation for Disney and OpenAI. Disney gets to deploy its beloved brands in the world of AI while keeping control of the intellectual property.
“Fans can use Disney characters to make videos and take social media content to another level. That could drive significant traffic to OpenAI’s Sora social media platform, turning a relatively unknown entity into a household name in a flash.
“As part owner of the business, Disney will be able to use the equity stake in OpenAI to ensure its characters are used in a controlled environment.
“It’s a significant step forward for the concept of fan fiction”, he concluded.
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