UK government announces £20m fund for medicines manufacturing

The UK government has announced a £20 million fund to expand medicines manufacturing.

The Medicines and Diagnostic Manufacturing Transformation Fund was announced by Prime Minister Boris Johnson as a way to open up investment opportunities for medicines manufacturers in the UK. It’s hoped that the fund improves the country’s domestic supply chains and helps to create jobs in the process.

The government hopes the fund helps UK companies compete within the global market and also prepares the country for future healthcare needs.

Prime Minister Boris Johnson said: “This new £20m fund will significantly increase the capacity and resilience of our medicines and diagnostics manufacturing supply chains and equip us to fight future health crises.

Throughout the pandemic we have seen a coming together of British scientific industry and innovation and this new fund will enhance the UK’s manufacturing capabilities even further.”

The £20 million initial fund will be available from next year as part of the government’s 2021/2022 Spending Review. Manufacturing companies can bid for the fund to help with their capital costs. The fund will be run through a competitive process overseen by the Department for Business, Energy and Industrial Strategy.

Business Secretary Alok Sharma added: “The positive and timely response of our medicines manufacturers to the pandemic has been remarkable, but we want to ensure that the UK’s supply chains are even more resilient in the future.

There are huge opportunities for innovation in medicines and diagnostics, and this new fund will put the UK head and shoulders above others, boosting the UK’s capabilities and generating significant economic opportunities across the country.”

In response to the fund, BIVDA chief executive Doris-Ann Williams said:  “We welcome the announcement of the Medicines and Diagnostic Manufacturing Transformation Fund by the Prime Minister today. 

The lessons the country has learned during this difficult year in pandemic response must not be forgotten, and the innovations should be used to improve our diagnostic testing system for non-Covid illnesses including cancer, hepatitis and diabetes, to name but a few.

Last week we wrote to the Prime Minister on behalf of BIVDA members outlining the critical role they have played in scaling up our testing capacity, and we hope that Mr Johnson will recognise the need to involve British in-vitro diagnostic companies in the implementation of this fund.”