UNITED KINGDOM — Moderna has announced that it will construct a new research and manufacturing site, the Moderna Innovation and Technology Center (MITC), in Oxfordshire, UK.
The MITC will be located on the Harwell Science and Innovation Campus and will have both research and development capabilities, as well as a manufacturing facility for Moderna’s Covid-19 vaccine and other respiratory vaccines that may be approved in the future.
The company plans to invest hundreds of millions of dollars in the UK through the construction of the state-of-the-art facility, which is expected to create hundreds of jobs.
Moderna hopes to start construction this year, with the manufacturing site becoming operational in 2025, subject to local planning and other approvals.
Moderna’s decision to expand its manufacturing operations in the UK follows its announcement of plans for the MITC in June 2020, with the deal also including a 10-year partnership to boost the mRNA ecosystem in the country.
However, the company is also investing in other countries, such as Spain, where it has already invested over US$500 million to expand its presence.
Media reports also suggest that Moderna may be considering Japan for another manufacturing site.
According to Statista, the pharmaceutical industry is a significant contributor to the United Kingdom’s economy, with the annual turnover of pharmaceutical goods wholesalers reaching approximately 55 billion British pounds (US65.08 billion) in 2020.
The UK ranks among the top 10 national markets globally, accounting for 2.6 percent of the global pharmaceutical sector.
AstraZeneca and GlaxoSmithKline are two leading companies in the UK’s drug manufacturing industry.
While GlaxoSmithKline was previously the leading pharmaceutical company in the UK based on market capitalization, AstraZeneca has gained significant market value in recent years.
This growth can be attributed, in part, to the successful development of its COVID-19 vaccine in collaboration with a team at Oxford University.
As of November 2022, AstraZeneca’s market capitalization was estimated to be approximately 170 billion British pounds (US$201 billion).
Meanwhile, AstraZeneca has taken a US$400 million new plant outside UK, blaming unfair taxes.
AstraZeneca’s CEO, Pascal Soriot revealed that the company’s decision to build a new US$400 million active pharmaceutical ingredient (API) facility in Dublin was due to the “discouraging” tax rate in the UK.
Despite the UK government’s aim to turn the country into a life sciences hub, high tax rates are causing decision-makers to look elsewhere.
Soriot emphasized that AstraZeneca remains committed to the UK but needs more supportive policies for the industry.
The Dublin facility will help AstraZeneca’s global manufacturing network and supply early commercial supplies for certain medicines.
In addition to the tax rate, Ireland’s commitment to developing more green energy played a factor in the decision.
Soriot highlighted the need for more than just discovery science in the life sciences sector, citing AstraZeneca’s US$1 billion R&D center investment in Cambridge.
The UK’s Voluntary Scheme for Branded Medicines Pricing and Access has faced challenges recently, with AbbVie and Eli Lilly withdrawing in January due to the government’s move to force manufacturers of branded medicines to return almost 26.5% of sales to the government in 2023.
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