AstraZeneca

Lord Foulkes of Cumnock Excerpts

Thursday 6th February 2025 Lords Chamber

[Lord Vallance of Balham (Lab)]

Yes, I am happy to do so. The first was the restructuring of the deal because of the AstraZeneca decision to put less into R&D, which meant that there was a proportionate decrease in the state funding, which I think most people would think would be an appropriate position in a deal. Secondly, I think that it has expressed concerns about the voluntary scheme for branded medicines pricing and access programme. It was also concerned about NICE’s decision to refuse approval for its recent drug Enhertu. But I think noble Lords would agree that it is not appropriate for the Government to link decisions on individual drugs to investment in other parts of the system.

[Lord Foulkes of Cumnock (Lab Co-op)]

My Lords, would the Minister confirm that the chief executive of AstraZeneca has said that it was a purely commercial decision and that a potential grant of £80 million should not be significant to a company that has made a profit of nearly £9 billion and increased its profits by 38% in the last year? Surely it is the company’s responsibility, unlike what has been suggested by the unfortunate spokesperson for the Opposition?

[Lord Vallance of Balham (Lab)]

I think it is undoubtedly a commercial decision. Having been head of R&D for a multinational pharmaceutical company, I know exactly how these decisions are made. It will have been a commercial decision as to where it needs to make the right investments for its vaccine manufacturing. I think the small change in the deal from the UK Government was probably a minor part in the overall decision-making.