Key points from article :
AstraZeneca has suggested it could cut UK jobs if the government enforces a proposed biodiversity profit-sharing levy. This comment, reported by multiple sources, came during a Department for Environment, Food, and Rural Affairs meeting to discuss a tax on profits derived from using digital sequence information (DSI). AstraZeneca, however, denied that their representative made any such statement.
The pharmaceutical industry is lobbying hard against the introduction of this levy, which would require companies to share profits made from genetic resources. The idea behind the tax is to ensure fair benefit sharing, especially for biodiverse nations whose natural genetic information is used commercially, often without compensation. The proposal includes a 1% levy on profits, potentially costing AstraZeneca as much as $60 million.
The issue of DSI is currently being discussed by global leaders at Cop16 in Cali, Colombia, as they attempt to agree on how to share the benefits from nature's genetic codes. Many biodiverse countries argue that using these resources without compensation amounts to “biopiracy.” They want companies to share their profits when genetic information is used to create commercial products.
However, pharmaceutical companies argue that such measures could discourage the use of crucial genetic data and hinder innovation. AstraZeneca recently committed to investing £650 million in UK operations, but sources from the meeting indicated jobs in northwest England might be at risk if the levy proceeds. Industry representatives also argue that a compulsory levy could make UK companies less competitive compared to countries like the US, which is not part of this initiative.
The negotiations at Cop16 are ongoing, with many stakeholders emphasizing the need to balance conservation, innovation, and fair economic growth. Governments, including the UK, are considering whether to enforce such levies at a national level.
