AstraZeneca to List Shares in New York but Keep London Base

AstraZeneca said its global listing will broaden its investor base and boost its appeal for shareholders.

The logo for AstraZeneca outside its North America headquarters in Wilmington, Del., on Mar. 22, 2021. Rachel Wisniewski/Reuters

AstraZeneca announced on Sept. 29 that it will list its ordinary shares directly on the New York Stock Exchange, replacing its American depository receipts, but said it is not abandoning London.

AstraZeneca, the UK’s second-biggest listed company with a market value of 170 billion pounds ($228 billion), said the change is part of a plan to “harmonise” its listing structure across London, Stockholm, and New York, making it easier for investors to trade its stock globally.

Its shares will continue to trade on the London Stock Exchange (LSE), where the group will remain headquartered, a tax resident, and part of the FTSE 100.

The company’s chair, Michel Demare, said the move was designed to widen the investor base while keeping ties to Britain.

“Today we set out our proposed harmonised listing structure which will support our long-term strategy for sustainable growth, while remaining headquartered in the UK and listed in London, Stockholm and New York,” he said. “Enabling a global listing structure will allow us to reach a broader mix of global investors and will make it even more attractive for all our shareholders to have the opportunity to participate in AstraZeneca’s exciting future.”

U.S. President Donald Trump unveiled a set of new tariffs last week, including a 100 percent levy on patented drugs starting Oct. 1.

AstraZeneca described the United States as the world’s largest and most liquid equity market with deep pools of biopharma investors.

“The Board is determined to ensure that the AstraZeneca Group has the flexibility to access the broadest available pool of capital, including in the US, which today’s announcement will make possible,” said the Anglo-Swedish drugmaker.

AstraZeneca will continue to be bound by the Companies Act, the UK’s main company law, and the UK Corporate Governance Code, which sets standards for how listed companies are led and overseen.

The full details of the plan will be sent to shareholders ahead of a general meeting scheduled for Nov. 3, the company said.

AstraZeneca’s announcement follows a more decisive move by Indivior, which in July canceled its secondary listing on the LSE. The opioid-treatment specialist now trades only on Nasdaq, citing higher liquidity and stronger alignment with its U.S. operations.

Indivior, which employs more than 1,000 staff globally, said it wanted to simplify its structure and focus on its main market.

Tariffs and US Expansion

Last week, Trump said he would impose a 100 percent tariff on “any branded or patented pharmaceutical product” entering the United States starting Oct 1.

The levy would spare companies building U.S. manufacturing facilities, with exemptions for projects already “breaking ground” or “under construction.” Trump said the aim was to push drugmakers to shift more production to the United States.

In July, AstraZeneca deepened its commitment to the United States, its biggest market, committing $50 billion in investment by 2030. The funding would support a new manufacturing site in Virginia and expand research and cell therapy operations in Maryland, Massachusetts, California, Indiana, and Texas.

AstraZeneca expects the new investment to help boost annual revenue to $80 billion by 2030, with about half generated in the United States.

Other large pharmaceutical companies have also pledged multibillion-dollar investments in America this year. Eli Lilly unveiled a $27 billion plan in February, Johnson & Johnson committed more than $55 billion the following month, and Novartis and Roche announced U.S. expansions worth $23 billion and $50 billion, respectively.

Merck said it would build a $1 billion plant in Delaware.

Some industry groups warned that the tariffs could hurt patients and smaller biotech firms.

John F. Crowley, president of the Biotechnology Innovation Organization, said that 100 percent duties would negatively affect small and mid-sized U.S. biotech companies that lack the capital to quickly build domestic plants.

Earlier this year, the Association for Accessible Medicines, which represents generic drugmakers and biosimilar manufacturers, said that tariffs could worsen supply chain challenges for lower-cost treatments.