1 00:00:00,160 --> 00:00:04,920 Speaker 1: The medicines that we provide are essential medicines, whether it's 2 00:00:04,920 --> 00:00:09,639 Speaker 1: an ecology or rare diseases or cardiovascular So there is 3 00:00:10,080 --> 00:00:14,160 Speaker 1: a public health element here and drug shortages and things 4 00:00:14,200 --> 00:00:18,560 Speaker 1: like that that one needs to take into account, you know, 5 00:00:18,600 --> 00:00:22,439 Speaker 1: if any tariffs were to be to be implied. And 6 00:00:22,480 --> 00:00:25,040 Speaker 1: then also one has to take into account the fact 7 00:00:25,160 --> 00:00:30,400 Speaker 1: that manufacturing and supply chains are not a lift and shift. 8 00:00:31,240 --> 00:00:35,200 Speaker 1: You know, these are highly complex manufacturing supply chains and 9 00:00:36,280 --> 00:00:41,239 Speaker 1: they need to be regulated and quality controlled and approved 10 00:00:41,240 --> 00:00:44,839 Speaker 1: by the FDA, etc. So there's also a time element 11 00:00:45,000 --> 00:00:46,720 Speaker 1: to moving supply chains. 12 00:00:47,040 --> 00:00:50,640 Speaker 2: President Trump there has repeatedly said that TE plans to 13 00:00:50,720 --> 00:00:54,360 Speaker 2: apply levies to the pharmaceutical sector, although it seems to 14 00:00:54,480 --> 00:00:57,240 Speaker 2: seems to be paused for the moment. If there are 15 00:00:57,480 --> 00:01:02,160 Speaker 2: US tariffs on imputed meds into the US, who pays? 16 00:01:02,280 --> 00:01:05,240 Speaker 2: Is it companies? Is it US consumers? You just mentioned 17 00:01:05,280 --> 00:01:08,480 Speaker 2: how complex it would be for firms like Astra Zeneca. 18 00:01:08,920 --> 00:01:11,440 Speaker 1: Yeah, so I would say, you know, again, every company 19 00:01:11,520 --> 00:01:18,959 Speaker 1: is different. We're actually in a very fortunate position for manufacturing, 20 00:01:19,000 --> 00:01:22,720 Speaker 1: so we have thirty one manufacturing slits globally. Over the 21 00:01:22,800 --> 00:01:27,400 Speaker 1: last several years, we've actually been manufacturing, investing in manufacturing 22 00:01:28,000 --> 00:01:31,440 Speaker 1: separately in China, you know, in the US, in Europe 23 00:01:32,200 --> 00:01:36,360 Speaker 1: and our manufacturing is fairly segregated. So the product we 24 00:01:36,480 --> 00:01:41,000 Speaker 1: manufacture in China is for China and emerging markets, and 25 00:01:41,520 --> 00:01:44,360 Speaker 1: we have eleven of those thirty one manufacturing sites in 26 00:01:44,400 --> 00:01:47,880 Speaker 1: the US. The vast majority of the product that we 27 00:01:48,480 --> 00:01:51,760 Speaker 1: that we sell in the US is actually manufactured domestically. 28 00:01:52,640 --> 00:01:56,080 Speaker 1: There is a minority of product that we do import 29 00:01:56,200 --> 00:01:59,880 Speaker 1: from Europe into the US. However, as you know, for 30 00:02:00,280 --> 00:02:07,600 Speaker 1: pharmaceutical product, we always maintain dual sources of supply, so 31 00:02:07,800 --> 00:02:10,480 Speaker 1: that will require you know, if there were caraffs put 32 00:02:10,560 --> 00:02:15,160 Speaker 1: on Europe, that would require some sort of measure of 33 00:02:15,600 --> 00:02:18,799 Speaker 1: changing those supply chains. But that's a process that we've 34 00:02:18,840 --> 00:02:23,400 Speaker 1: already started to rebalance the amount that comes from Europe 35 00:02:24,320 --> 00:02:27,239 Speaker 1: versus the US for those minority of products. 36 00:02:27,639 --> 00:02:31,040 Speaker 2: Pascal Soyo, who was speaking to Bloomberg, also talked a 37 00:02:31,040 --> 00:02:34,880 Speaker 2: bit about the innovation in your sector, the innovation being 38 00:02:34,960 --> 00:02:38,240 Speaker 2: mostly paid for by America, Europe and mitture countries have 39 00:02:38,320 --> 00:02:42,200 Speaker 2: to invest more in farmer innovation. Was his message that 40 00:02:42,240 --> 00:02:45,800 Speaker 2: the model is unbalanced. Too much funding in the United States. 41 00:02:45,840 --> 00:02:50,360 Speaker 2: Do you expect more investment in drug innovation in Europe. Now, 42 00:02:50,440 --> 00:02:54,079 Speaker 2: President Trump's push in the defense sector move the needle 43 00:02:54,240 --> 00:02:57,480 Speaker 2: significantly on spending. Will it do the same in the 44 00:02:57,520 --> 00:02:58,400 Speaker 2: farmer industry. 45 00:02:59,520 --> 00:03:02,960 Speaker 1: Well, that's our hope, but obviously it's not for me 46 00:03:03,080 --> 00:03:07,919 Speaker 1: to comment on. I think Pascal has also talked about 47 00:03:07,960 --> 00:03:14,000 Speaker 1: this concept of health sovereignty, and it's both from making 48 00:03:14,040 --> 00:03:18,320 Speaker 1: sure that patients in Europe have access to the best medicines, 49 00:03:18,600 --> 00:03:22,720 Speaker 1: the best innovation in a timely manner, and that's important 50 00:03:22,760 --> 00:03:25,840 Speaker 1: for the patients and the citizens of that country, but 51 00:03:26,040 --> 00:03:31,320 Speaker 1: also that Europe maintains and spends more on innovation and 52 00:03:31,400 --> 00:03:35,760 Speaker 1: innovative drugs, and that will attract more investments in R 53 00:03:35,800 --> 00:03:39,720 Speaker 1: and D and more investments in manufacturing and so forth. 54 00:03:39,760 --> 00:03:43,960 Speaker 1: So I think it is in the best interest of Europe, 55 00:03:43,960 --> 00:03:47,320 Speaker 1: but obviously that's a policy matter and budget matter that 56 00:03:47,360 --> 00:03:48,720 Speaker 1: they'll need to consider. 57 00:03:48,680 --> 00:03:51,200 Speaker 2: As to drop to plan four hundred and fifty million 58 00:03:51,280 --> 00:03:53,480 Speaker 2: pounds investment here in the UK at the start of 59 00:03:53,520 --> 00:03:57,360 Speaker 2: this year, Chance of rahel Reeves then called Astra one 60 00:03:57,440 --> 00:04:00,520 Speaker 2: of the great companies. You said that in January as 61 00:04:00,520 --> 00:04:02,600 Speaker 2: she was setting out her plans to try to kickstart 62 00:04:02,600 --> 00:04:05,360 Speaker 2: the UK economy saying she was determined to make Britain 63 00:04:05,400 --> 00:04:08,880 Speaker 2: the best place in the world to invest. Are you 64 00:04:09,000 --> 00:04:11,600 Speaker 2: seeing any benefits at all that you could point to 65 00:04:12,040 --> 00:04:16,360 Speaker 2: of this attitude from the government, the need for more 66 00:04:16,400 --> 00:04:19,400 Speaker 2: economic growth, of focus on growth as the Labor government 67 00:04:19,400 --> 00:04:20,119 Speaker 2: has talked about. 68 00:04:20,680 --> 00:04:25,680 Speaker 1: Uh not yet, So we haven't really seen any of 69 00:04:25,720 --> 00:04:31,200 Speaker 1: that yet. I think bescal And has often mentioned an 70 00:04:31,240 --> 00:04:37,280 Speaker 1: example of this, which it relates to in her two 71 00:04:37,480 --> 00:04:40,880 Speaker 1: which I would say, you know, has one of has 72 00:04:40,960 --> 00:04:46,839 Speaker 1: been one of the key innovative drugs in breast cancer, 73 00:04:47,880 --> 00:04:50,400 Speaker 1: probably the best innovation in the last twenty years as 74 00:04:50,400 --> 00:04:54,360 Speaker 1: it relates to breast cancer, and that is not reimbursed 75 00:04:54,360 --> 00:05:00,320 Speaker 1: in the UK. So, you know, it's industrial policy is 76 00:05:00,360 --> 00:05:03,440 Speaker 1: obviously one thing, but obviously access to medicines is also 77 00:05:03,480 --> 00:05:06,840 Speaker 1: important because you know, if you think about where we 78 00:05:06,880 --> 00:05:10,160 Speaker 1: do our studies and where we invest R and D investment, 79 00:05:11,200 --> 00:05:13,280 Speaker 1: you know, eventually at the end of all of that, 80 00:05:13,400 --> 00:05:16,880 Speaker 1: we do want patients in that country to have access 81 00:05:16,880 --> 00:05:20,000 Speaker 1: to medicine. So you know, if we spend all the 82 00:05:20,200 --> 00:05:23,120 Speaker 1: money in research and then patients don't benefit in that country, 83 00:05:23,200 --> 00:05:25,000 Speaker 1: that's very disappointing. 84 00:05:25,839 --> 00:05:30,480 Speaker 2: Yeah, So perhaps NHS patients in the UK missing out 85 00:05:30,680 --> 00:05:36,599 Speaker 2: on that. In terms of vaccines, the takeup of important 86 00:05:37,240 --> 00:05:40,760 Speaker 2: vaccines also is falling in the US and here in 87 00:05:40,800 --> 00:05:44,480 Speaker 2: the UK and worldwide. I want to ask you about 88 00:05:44,520 --> 00:05:47,560 Speaker 2: the MMR vaccine, the measles, mumps and Rebella vaccine. Are 89 00:05:47,600 --> 00:05:51,120 Speaker 2: you concerned at astra about the decline in vaccine take 90 00:05:51,200 --> 00:05:52,680 Speaker 2: up in the US and the UK. 91 00:05:53,440 --> 00:05:59,839 Speaker 1: So we don't actually supply vaccines, either childhood or adult vaccines, 92 00:06:00,360 --> 00:06:03,200 Speaker 1: so we're not really in the vaccine business. So from 93 00:06:03,240 --> 00:06:07,239 Speaker 1: a business standpoint, we we don't really have any concern. 94 00:06:08,440 --> 00:06:13,240 Speaker 1: I know it's a public health issue obviously that needs 95 00:06:13,240 --> 00:06:13,880 Speaker 1: to be addressed. 96 00:06:15,000 --> 00:06:18,360 Speaker 3: Coming back to some of the diversification of your supply 97 00:06:18,440 --> 00:06:20,880 Speaker 3: chains that you mentioned earlier as well from a cost 98 00:06:20,880 --> 00:06:22,520 Speaker 3: point of view, At a financial point of view for 99 00:06:22,560 --> 00:06:25,600 Speaker 3: the company, what is the added cost of producing in 100 00:06:25,960 --> 00:06:29,159 Speaker 3: a siloed sort of fashion that you described versus the 101 00:06:29,320 --> 00:06:31,200 Speaker 3: more integrated global supply chains. 102 00:06:32,560 --> 00:06:36,240 Speaker 1: You know, it's hard to say, you know, which is 103 00:06:36,240 --> 00:06:42,080 Speaker 1: more efficient because again every product is different. Components for 104 00:06:43,800 --> 00:06:48,559 Speaker 1: manufacturing do come from from different places. But you also 105 00:06:48,640 --> 00:06:52,159 Speaker 1: have reduced shipping costs for example, you know when you 106 00:06:52,240 --> 00:06:56,839 Speaker 1: have more segregated supply chains. But I also when I 107 00:06:56,920 --> 00:07:00,680 Speaker 1: talked about moving some of the supply and manufacturing from 108 00:07:00,720 --> 00:07:04,280 Speaker 1: Europe to the US. We already have, as I said, 109 00:07:04,320 --> 00:07:08,160 Speaker 1: eleven manufacturing sites, and many of them actually have additional capacity. 110 00:07:08,240 --> 00:07:11,720 Speaker 1: So it would be, you know, some incremental investment for US, 111 00:07:11,720 --> 00:07:15,080 Speaker 1: but you know, very from a marginal standpoint, it would 112 00:07:15,120 --> 00:07:16,480 Speaker 1: not be a lot of investment.