Newcastle health firm to create 'new skilled jobs' with £50m investment to supply drugs to NHS

New skilled jobs are set to be created at a Newcastle firm supplying life saving drugs to the NHS, following the announcement of a Government-backed £50m investment.

The multimillion-pound investment at Accord Healthcare in Fawdon has been confirmed by Chancellor Rachel Reeves, secured in partnership with the firm – one of the suppliers of chemotherapy products in Europe – which will now build a state-of-the-art manufacturing facility. The move safeguards the future of the site, while also creating 50 new jobs and incorporating the latest automated tech, ensuring Accord continues to produce and supply lifesaving medicines to the NHS.

On a visit to the Newcastle, the Chancellor will today welcome the £50m deal with Accord and highlight how Accord’s commitment to the UK is just the kind of partnership investment that will grow the UK economy. The Government-backed deal will enable Accord to manufacture lifesaving medicines for oncology and autoimmune diseases treatments to the NHS, as well as health systems and patients across Europe.

The investment will also support efforts to shore up the UK’s supply chain of critical medicines and boost UK health resilience. The Chancellor welcomed the investment, which comes two days after delivering a Budget she pledged would “fix the foundations of the economy”, with more than £100bn capital investment set to be made over the next five years to attract private investment in key industries.

Ms Reeves said: “No one should be in any doubt that it is my number one mission to grow our economy. 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.”

Welcoming the announcement Paul Tredwell, executive vice president of Accord Healthcare, EMENA, 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 government is squarely behind this business sector.

“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 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.”

Science and Technology Secretary Peter Kyle said: “Medicines manufacturing is a UK success story. Partnerships between government and industry are crucial in taking groundbreaking new treatments from research labs to treating patients. Investments like this will help secure the manufacture of next generation life-saving medicines and support our resilience to future pandemics.

“This joint public-private investment in Accord Healthcare’s site will retain and create highly skilled jobs in Newcastle, ensuring we reap the benefits of the talent in every corner of our country while growing our local and national economies.”

The Budget’s Industrial Strategy also shone a light on growing and high potential sectors, including up to £520m for a new Life Sciences Innovative Manufacturing Fund to drive growth and build resilience for future health emergencies. The new fund is expected to leverage £3.7bn investment, creating and safeguarding 13,599 high skilled jobs.

Following the Budget announcement on Wednesday Labour was accused of delivering little backing for the North East.

The big news for the region was the revelation the Government had decided to scrap the plans to dual the A1 in Northumberland, branding the project “unfunded and unaffordable”, although Ms Reeves “confirmed” £25m worth of funding for the development of the Crown Works film studios in Sunderland, although those funds were officially announced earlier this year.