AstraZeneca has said it may cut jobs at its UK operations if the government imposes a global push for companies to share profits derived from nature’s genetic codes, multiple sources told the Guardian.
The alleged comments from the company came amid an active lobbying by the pharmaceutical industry against the profit-sharing measures.
Sources told the Guardian that the British-Swedish biotech company – which made $5.96 billion (£4.59 billion) profit last year – made the comments at a Department for Environment, Food and Rural Affairs roundtable meeting last week to discuss a proposed new global levy on drugs derived from the digital forms of biodiversity , to discuss. A spokesperson for AstraZeneca denied that the comments were made by their representative.
Nature’s genetic codes – which, when stored digitally, are known as digital sequence information (DSI) – are playing a growing role in the development of new medicines in the pharmaceutical and biotechnology industries.
But there is widespread anger among biodiverse countries about how DSI is used by multinational companies to develop commercial products – almost always for free. Most of the world’s remaining biodiversity is concentrated in poorer countries. They argue that the free use of this genetic information amounts to “biopiracy”, and says companies should share profits when native species are used to develop commercial products.
World leaders already have agreed in principle that these benefits should be distributed more fairly. They are now convened in Cali, Colombia, at the Biodiversity Police 16in negotiations about what form that sharing should take.
Ideas being considered include a 1% global tax on profits from goods sourced from DSI, which could cost the Cambridge-based company as much as $60 million if enforced by the UK government [that figure represents an estimated maximum, as not all of the firm’s profit would be derived from DSI].
The profit-sharing proposals have caused significant pushback from pharmaceutical companies. In March, AstraZeneca A £650m announced investment in its UK operations, including £450m for its vaccine research and manufacturing facility in Liverpool. However, according to sources present at last week’s meeting, a representative of the company said jobs in North West England could be affected by any levy.
Quick guide
What is digital sequence information and why are countries fighting over it?
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What is DSI?
Samples of natural organisms have been collected for scientific research for a long time. Now their genetic codes are often the most useful to researchers. This information is mostly exchanged online, via large databases that store digitized versions of genetic codes. This is known as Digital Sequence Information, or DSI.
Why is it valuable?
Many important scientific discoveries, including treatments for diseases such as Alzheimer’s and cancer, have come from nature’s genetics. For example, the reaction that powers Covid-19 tests was developed using heat resistant bacteria from a Yellowstone geyser. Because much of this genetic information is digitized, it is used by scientists, companies and large AI models looking for potential new drug discoveries, proteins and materials that could one day be worth billions.
What is the conflict?
Most of the undiscovered biodiversity that could generate new discoveries lies in poorer countries – places like the vast rainforest of the Congo Basin. Many of those countries object to companies and researchers using their native biodiversity without paying for it: they call it “bio-piracy”. At the Cop16 UN Biodiversity Summit in October 2024, world leaders are seeking to negotiate an agreement on sharing resources from DSI.
Without a global agreement on how revenue is shared from discoveries based on DSI, some countries have threatened to limit access to their biodiversity – potentially a major blow to commercial and scientific research. Proceeds from the global fund will be used for nature conservation around the world in an effort to prevent the continued destruction of ecosystems.
Eva Zabey, CEO of Business for Nature, said to make progress with DSI at the Police 16 negotiations were essential.
“Nature underpins every aspect of our economy. The benefits of natural resources – including through digital sequencing – must be valued and fairly shared. Businesses have a responsibility to contribute financially and non-financially for their use of these resources,” she said.
Although any DSI levy would be voluntary, governments would be free to implement mandatory national measures, an approach being considered by the UK government.
At the Defra meeting on 15 October, pharmaceutical industry representatives voiced strong opposition to the idea, saying a mandatory levy would harm competitiveness with countries such as the US, which is not a signatory to the UN’s biodiversity process and has no levy will not set.
Richard Torbett, chief executive of the Association of the British Pharmaceutical Industry, who attended the Defra meeting, said the introduction of a mandatory levy for UK companies was “a poorly targeted and damaging response to a critical global challenge”.
“This will discourage the use of this vital data, and stifle UK research efforts into vital public health concerns,” he said.
“Any multilateral benefit-sharing mechanism must promote conservation goals alongside scientific innovation and economic growth. The proposals on the table at Cop16 for a mandatory levy do not achieve this.
“They will have a direct impact on UK innovation, investment and growth, exacerbated by the fact that key countries such as the US will not impose a levy, putting the UK at an active disadvantage to cutting-edge medical research attract,” he said.
Before the negotiations in Cali, the International Federation of Pharmaceutical Manufacturers and Associations (IFPMA), said it did “serious concerns” about a proposed global DSI tax, and that it could further complicate research.
Steve Bates, chief executive of the UK Bioindustry Association, said: “Any rules or charges coming out of this summit will impose barriers to innovation and business growth… We have already discussed this with the UK government delegation going to Colombia.”
International DSI negotiations at Cop16 are expected to end on Friday next week.
A spokesman for AstraZeneca said it may be the case that others in the room at the October 15 meeting representing the industry may have commented on the impact on companies.
“I can confirm that no AstraZeneca representative has made threats to relocate operations or cut jobs. As a company we are in line with the position set out by the IFPMA which can found here,” they said.
