Thursday, July 3, 2025

London’s stock market risks a major blow if AstraZeneca leaves, says report

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AstraZeneca is reportedly weighing a move to shift its primary listing from London to the US, dealing a potential blow to the London Stock Exchange and the broader UK financial ecosystem, according to a CNBC report.Why it matters?

AstraZeneca is the most valuable company on the FTSE 100, with a market cap of £161.2 billion ($221.1 billion). If the pharmaceutical giant exits, it could spark a significant rebalancing of the index—and signal a deepening crisis for London’s global competitiveness.
What’s fuelling AstraZeneca’s move?Regulatory friction: CEO Pascal Soriot is reportedly frustrated with UK rules around drug approvals and pricing.
US presence: AstraZeneca already generates 42% of its sales in the US and has major R&D operations there.
Capital markets appeal: US markets offer deeper liquidity and higher valuations. UK stocks trade at a ~32% discount compared to US counterparts, per Rathbones.The big picture

London has been losing its appeal as a top-tier listing destination. Earlier, Wise and CRH have moved primary listings to New York, while Shein and Cobalt Holdings passed on London IPOs. In fact, over $100 billion in market value has already migrated across the Atlantic.

Experts, according to the report, say AstraZeneca’s potential shift isn’t just about money—it’s a reflection of deeper structural issues in the UK market.

That said, the move wouldn’t be simple. AstraZeneca has a geographically diverse investor base.

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