07:05 AM EDT, 08/23/2024 (MT Newswires) -- AstraZeneca ( AZN ) refuted claims in a Financial Times report Thursday that it allegedly warned UK authorities of plans to relocate its Speke vaccine manufacturing site to Philadelphia due to stalled negotiations with the Labour government over reduced state aid promised to the project, a spokesperson told MT Newswires in an emailed statement on Friday.

"We are committed to pursuing the opportunity at Speke and are in constructive discussions with the UK government," a spokesperson said, adding that the claims made in the media "do not seem to be based on facts."

On Thursday, the Financial Times, citing people briefed on the government's thinking, reported that Chancellor of the Exchequer Rachel Reeves is considering reducing the amount of state support provided to AstraZeneca ( AZN ) to 40 million pounds sterling ($52 million) from the previously pledged 90 million pounds.

The offer by the previous Conservative government included up to 70 million pounds in grants to develop AstraZeneca's ( AZN ) vaccine facility at Speke, and an additional 20 million pounds in research and development support from the UK Health Security Agency, the Financial Times reported, citing unnamed sources.

AstraZeneca ( AZN ) executives told UK officials that the company may shift its vaccine operation to Philadelphia, US as they are offered "generous financial support". In addition, the company also reportedly suggested that some of the manufacturing could also be shifted to India, the report said.

AstraZeneca ( AZN ) told the Financial Times: that the company is "committed to pursuing the opportunity at Speke and are in constructive discussions with the UK government".

"There are no discussions ongoing in the US or India," AstraZeneca ( AZN ) was quoted by the Financial Times as saying.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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