Asked what it would take for AstraZeneca to go ahead with its planned £200 million investment in its Cambridge research site, Mr Grady told The Telegraph: “Unless the commercial environment changes, the UK is not going to be on the list.”
The company had already cancelled a £450 million expansion of its vaccine manufacturing plant in Liverpool after Labour withdrew funding for the project.
Mr Grady said AstraZeneca would “revisit and reflect” on its Cambridge plans as discussions with the Government continue.
He also criticised the system used by the National Institute for Health and Care Excellence (NICE) to decide which drugs the NHS should fund, saying: “The thresholds have not been changed for 25 years, which is pretty appalling.”
Comparing the UK’s approach with that of other nations, he said: “Countries including Ireland and Singapore are offering companies significant subsidies or tax breaks to invest there.”
He pointed to the US, where AstraZeneca announced a £50 billion investment by 2030, adding: “This is a competitive global pitch. We announced a £50 billion investment in the US.
“We met the governor of Virginia in our offices in London, we announced that £50 billion investment 33 days later. We need to think about that speed and what truly is a concierge service.”
The warning comes amid a standoff between ministers and the pharmaceutical industry over a voluntary scheme that caps how much the NHS spends on branded medicines.
Health Secretary Wes Streeting walked away from talks with drugmakers this summer after failing to strike a new pricing deal, though discussions led by science minister Lord Vallance are ongoing.
The current system allows the NHS to claw back money from drug firms if spending exceeds a set threshold — a rebate rate that was unexpectedly raised to almost 23 per cent for 2025.
Mr Grady said the policy was putting future investment at risk, arguing that the UK was missing out because of an outdated approach to pricing and innovation.
A Government spokesperson said: “Through the Life Sciences Sector Plan we are making the UK the destination of choice for business, investing up to £600 million in the Health Data Research Service with the Wellcome Trust, committing up to £520m to the Life Sciences Innovative Manufacturing Fund and welcoming billions of UK investment from companies like Moderna and BioNTech.
“We will always put patients and taxpayers first, encouraging investment and innovation whilst ensuring best value for money.
“Having made an unprecedented £1 billion through the Voluntary Scheme on branded medicines to industry, we will continue to engage.”
Last week Convatec confirmed a £500 million UK life sciences investment. Companies like Moderna, Prologis and BioNTech are reportedly investing billions in the sector.
Government commitments include over £650 million in Genomics England and up to £354 million in Our Future Health
