The UK government has announced a £50m investment to build a new manufacturing facility in Newcastle to produce and supply lifesaving medicines for the National Health Service (NHS).
NHS Chancellor Rachel Reeves confirmed a deal with Accord Healthcare, a supplier of chemotherapy products in Europe, to build the new facility.
The proposed manufacturing plant in Newcastle is anticipated to feature advanced automation technology and create more than 50 skilled jobs.
The deal allows Accord to continue producing and supplying lifesaving medicines for oncology and autoimmune diseases, to the NHS and other health systems across Europe.
Also, it will support efforts to strengthen the UK’s critical medicines supply chain and enhance the country’s health resilience in the event of a future pandemic.
Accord Healthcare EMENA executive vice president Paul Tredwell said: “Accord is delighted to have worked with the government to unlock this £50 million investment to continue supplying affordable, high-quality medicines to the NHS.
“Today’s announcement is positive news for the medicines manufacturing industry across the UK and signals that the government is squarely behind this business sector.”
The £50m partnership follows the announcement of a £100bn capital investment over the next five years, as part of the Budget to attract private funding and rebuild Britain’s infrastructure.
According to the Budget, the Industrial Strategy will enhance the certainty and stability of businesses to invest in the UK’s growing and high-potential sectors.
The Industrial Strategy allocates up to £520m for a new Life Sciences Innovative Manufacturing Fund, which aims to drive growth and build resilience for future health emergencies.
The new fund is anticipated to use a £3.7bn investment, creating and maintaining 13,599 high-skilled jobs, along with £1.7bn of R&D spillover benefits.
NHS Chancellor of the Exchequer Rachel Reeves said: “The £100bn capital investment in my Budget this week helps us achieve that by attracting private investment. It’s that partnership model that will grow our economy and restore stability, whilst delivering better jobs and driving prosperity across all corners of the country.”
Tredwell added: “For us at Accord, it has meant that we have been able to confidently invest in our production facility in Fawdon, Newcastle upon Tyne where we have been able to significantly increase production of a range of innovative, lifesaving medicines for patients across the UK and Europe.
“This Government investment has allowed us to invest further in our people allowing us to grow our presence in the UK, whilst simultaneously playing a significant part in reducing medicine shortages in the UK and shoring up our ability to respond well in future public health emergencies.”
