AstraZeneca laid out plans on Monday to switch to a direct listing of its shares in the United States, as the drugmaker seeks to maximise gains from a booming U.S. stock market, even as it said it was not exiting London.
The decision to remain UK-based and listed there will be of some relief to British investors after media reports suggested the Anglo-Swedish drugmaker—London’s most valuable company—was considering ditching its UK listing in favour of the U.S.
London’s stock market has been shrinking due to companies moving away for higher valuations and access to deeper capital markets elsewhere, particularly the U.S., prompting listing reforms from regulators to score some wins.
AstraZeneca said it would list its shares on the New York Stock Exchange and move away from the current depositary receipts structure, with trading expected on February 2, 2026.
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Trading in fully listed stocks is generally more liquid than in ADRs, attracting more investors.
The company will remain headquartered in the UK and listed in London and Stockholm, with the plan subject to a shareholders’ vote on November 3.
Its London-listed shares rose roughly 1% on Monday, taking the company’s gains for the year to about 6%.
They have underperformed domestic rival GSK, which is up 13.6%, and the UK’s broader, blue-chip FTSE 100 index which has gained 14.2%.
Commitment to UK
Nearly 22% of AstraZeneca’s shareholder base is from North America, its biggest, according to LSEG data, in line with other top UK-based blue-chip companies.
Iain Pyle at Aberdeen Group, a shareholder, said the main takeaway from the announcement was AstraZeneca’s “re-commitment” to the primary listing in the UK.
“From our point of view, (AstraZeneca) remains an attractive investment on a fundamental basis, with a broad pipeline still undervalued by the market – the listing location doesn’t alter that view.”
AstraZeneca Chair Michel Demare said the proposed “harmonised listing structure” would support the company’s long-term growth strategy.
“Enabling a global listing structure will allow us to reach a broader mix of global investors,” he said.
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A spokesperson for Britain’s Treasury welcomed AstraZeneca retaining its London listing, while the London Stock Exchange said that there would be no change to the drugmaker’s place on the FTSE 100 following the switch.
Peel Hunt analysts viewed AstraZeneca’s plans to stay in the UK as positive in the short term, but cautioned that U.S. success might prompt others to follow suit.
U.S. investment and visibility
Over the past decade, the FTSE 100 has severely underperformed U.S. markets, gaining only 53% while the S&P 500 more than tripled in value.
Wall Street indices, the Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite, hit multiple record highs this month, broadening the market’s appeal.
Companies are also ramping up U.S. investments to avoid hefty tariffs threatened by President Donald Trump’s administration.
AstraZeneca has pledged to invest $50 billion by 2030 in manufacturing in the U.S., its biggest market by sales. It has also said it will cut some direct-to-patient U.S. drug prices as drugmakers face pressure from the Trump administration to reduce prices.
The U.S. market remains pivotal for AstraZeneca, accounting for more than 40% of revenue in 2024.
The company is betting on its U.S. expansion and expected launches to reach $80 billion in annual revenue by 2030 and offset generic competition.
Earlier this month, AstraZeneca paused a planned 200 million pound ($268.80 million) investment in its research site in Cambridge, England, the latest drugmaker to pull back from the UK, citing a tough business environment.
($1 = 0.7440 pounds)
—Pushkala Aripaka; Additional reporting by Maggie Fick, Josephine Mason, Sarah Young, Charlie Conchie, and Danilo Masoni, Reuters