Accord will build £50m manufacturing plant in UK

Generic drugmaker Accord Healthcare has announced a £50 million ($65 million) investment in the UK that will include the construction of a new medicines manufacturing facility.

The new plant – which will be located in the North East in Newcastle upon Tyne and will receive funding support from the UK government – will supply lifesaving medicines for oncology and autoimmune disease treatments to the NHS and across Europe, according to a statement from the Department for Science, Innovation and Technology (DSIT).

When completed, the facility will use the latest automation technology, create around 50 new skilled jobs, and "safeguard the site's long-term future," said the government, adding that it will also shore up the UK's supply of critical medicines, boost the country's health resilience, and will be "highly valuable" in the event of a future pandemic.

London-headquartered Accord is one of the largest suppliers of chemotherapy products in Europe and is a wholly-owned subsidiary of India's Intas Pharma, which has annual revenues of around $3.4 billion.

The announcement is a fillip for the Labour government and Chancellor of the Exchequer Rachel Reeves, coming shortly after the announcement of a Budget that pledged to focus on growing investment and highlighted the UK life sciences sector as a key area for support.

That support included up to £520 million for a new Life Sciences Innovative Manufacturing Fund – including £70 million in 2025/26 – that is intended to drive growth and build resilience for future health emergencies and has been well-received so far by biopharma trade organisations.

"No one should be in any doubt that it is my number one mission to grow our economy," said Reeves during a visit to Accord's Newcastle site to celebrate the announcement.

"The £100 billion capital investment in my Budget […] helps us achieve that by attracting private investment," she added. "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."

The UK life sciences sector employs 304,000 people across nearly 7,000 companies, 80% of which are small and medium-sized enterprises (SMEs), with the sector seeing more then £108 billion turnover in 2021/22, said DSIT.

The latest revelation comes shortly after details emerged of a £400 million, public-private investment programme pledged as part of the new voluntary system of rebates paid by pharma companies in the UK, going mainly towards the creation of 18 clinical research hubs across the country.

"Today's announcement is positive news for the medicines manufacturing industry across the UK and signals that government is squarely behind this business sector," said Paul Tredwell, who leads Accord's Europe, Middle East, and North Africa (EMENA) operations.

"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."