Yahoo Finance AstraZeneca halts UK investments due to Brexit uncertainties
Pharmaceutical giant AstraZeneca has suspended investments in Britain due to the lack of clarity over the country's departure from the European Union.
With less than six months to go, Leif Johansson, non-executive chairman, told France's Le Monde newspaper precautions had to be taken.
"If a transition deal does not make clear what will happen in the future, we will maintain our decision not to invest," Mr Johansson said.
"A Brexit agreement will need to ensure that Britain does not become an isolated island in the middle of the Atlantic Ocean."
His comments came as Steven Armstrong, the head of Ford's European arm, also warned that a no-deal Brexit "would be pretty disastrous" for UK industry. Mr Armstrong told the BBC reverting to World Trade Organisation tariffs in the event of a no-deal "would certainly make us think long and hard about our future investment strategy".
In July, AstraZeneca's chief executive Pascal Soriot called for faster progress to avoid a no-deal Brexit, confirming the company was increasing stockpiles of medicines to prevent supply disruptions in case the UK has an abrupt exit from the EU.
The company has already spent £40m stockpiling in Britain and continental Europe, increasing its inventory in three months' supply to four in case drug shipments hit delays after March.
Some pharmaceutical companies including AstraZeneca have been vocal in their concerns over a no-deal scenario, as the industry is heavily regulated and drugs are manufactured in facilities across the EU.
They have warned over potential future hurdles including having to test and register drugs in both the European Union and the UK, as well as difficulties in recruiting scientists.
The European Medicines Agency, after conducting a survey earlier this year, warned that many drugs manufacturers were not ready for Brexit.
It said it had "serious concerns" that the work needed to ensure that 108 drugs, only made in the UK, could still be sold into the EU after Brexit would not be carried out in time.
