Moderna Opens £150 Million Pound Oxfordshire Facility Amid UK Drug Pricing Debate

Moderna has marked a significant milestone in the UK pharmaceuticals landscape by launching a £150m manufacturing and research facility in Oxfordshire. The ribbon-cutting ceremony, attended by Moderna’s chief executive Stéphane Bancel and the secretary for Health and Social Care Wes Streeting, signals the company’s commitment to expanding its footprint in Britain despite ongoing tensions over drug pricing.

As other pharmaceutical companies, including MSD, AstraZeneca and Eli Lilly, withdraw or pause investment plans in the UK over disagreements about the nation’s strict pricing regime, Moderna stands firm in its support. The company’s UK general manager, Darius Hughes, has described other industry criticisms as “a little harsh” and confirmed Moderna’s intention to honour its decade-long, £1bn partnership with the government, emphasising robust investment in research and development.

Debate has intensified following comments from Dave Ricks, chief executive of Eli Lilly, labelling the UK “probably the worst country in Europe” for drug prices. Critics point to the government’s voluntary scheme known as VPAG, which many argue leads to UK drug prices falling below those in other developed economies. Several pharmaceutical leaders claim the system risks depriving British patients of innovative treatments if changes are not enacted. Moderna, however, benefits from innovative vaccine contracts that fall outside the VPAG regime, which Hughes highlights as a differentiating factor underpinning continued investment.

The new Moderna facility, situated at the Harwell science campus among over 250 organisations in health, technology, and energy, is set to produce mRNA vaccines for NHS seasonal programmes. Licensed initially for Covid jabs, the site will soon seek licencing for flu vaccines. In addition to respiratory illnesses, the facility will research mRNA applications in cancer, rare diseases, and immune disorders. The centre is home to 80 manufacturing staff and 60 research scientists and lab technicians, who will also analyse clinical trial samples from across the globe.

With the capability to manufacture up to 100 million mRNA vaccine doses annually, Moderna states it remains prepared to scale up to 250 million doses should another pandemic arise. Bancel hails the new site as the first in the UK to supply domestically-produced mRNA vaccines, crediting the strategic government partnership for driving innovation and health security.

Moderna’s investments come at a pivotal time, as government representatives, including science minister Patrick Vallance, express a desire to resolve the pricing standoff and highlight the need for increased NHS spending on new medicines. The Harwell facility exemplifies the ambition to harness cutting-edge medical science while navigating the complexities of the international pharmaceuticals market.