Moderna has opened a £150m vaccine manufacturing and research facility in Oxfordshire, pledging long-term investment in the UK despite a growing row between the government and pharmaceutical companies over drug pricing.
Defending the UK
Darius Hughes, Moderna’s UK general manager, spoke at the opening of the new site at Harwell science campus, saying the company remains committed to its £1bn, decade-long partnership with the British government.
“We’re here to invest,” Hughes said. “We’re here on a 10-year strategic partnership, and we will be investing heavily in R&D across that period.”
His comments come just days after Eli Lilly’s chief executive, Dave Ricks, branded Britain “probably the worst country in Europe” for drug pricing, echoing similar frustrations voiced by AstraZeneca and MSD. Hughes said that assessment was “a little harsh”.
“I don’t want to dull down some of the challenges that the rest of the industry have got, but we are in a different place,” he added. “We’re here for pandemic preparedness, for the vaccine programmes, and to help protect British patients over the winter.”
Tensions Over VPAG
At the heart of the dispute is the UK’s voluntary scheme for branded medicines’ pricing, access and growth (VPAG). Pharmaceutical companies argue the rebate system – which requires firms to pay back a share of revenues when NHS spending rises faster than expected – has become unworkable.
Ricks warned that unless Britain raises prices and scraps the scheme, it risks losing out on access to new medicines. Moderna, however, is not directly affected, as vaccines are excluded from VPAG and are purchased centrally by the NHS.
A New Hub for mRNA Research
The new Harwell site will produce mRNA vaccines for the NHS, including Covid and flu jabs, and has the capacity to manufacture up to 100m doses annually – with the ability to scale up to 250m in a pandemic.
Beyond respiratory illnesses, Moderna scientists will explore how mRNA technology could be used to treat cancer, rare diseases and immune disorders. Around 140 staff are already employed at the site, split between manufacturing and clinical research roles.
“With mRNA, we can change the code and produce different vaccines for new variants every season,” Hughes said.
Backing from Ministers
Science minister Patrick Vallance, who attended the opening, said the government was determined to resolve the dispute with the pharmaceutical sector. He acknowledged that the UK needs to increase its spending on new medicines, which currently stands at just 9% of the overall NHS budget.
“The pioneering work Moderna will be doing here in the UK on mRNA is a prime example of the opportunity we want to grasp,” Vallance said.
Wider Industry Frustrations
Despite Moderna’s show of confidence, several pharmaceutical firms have pulled back from the UK in recent months. MSD scrapped plans for a £1bn research centre in London, AstraZeneca paused a £200m expansion in Cambridge, and Eli Lilly shelved a major lab project. Together, those decisions have cost Britain almost £2bn in potential investment this year.
Adding to tensions, Bristol Myers Squibb this week announced its new schizophrenia drug, Cobenfy, will be sold in the UK at the same price as in the US – $22,500 (£16,553) a year. If the NHS does not agree to cover it, the company has warned it may not launch the medicine in Britain.
Looking Ahead
While the broader drug pricing dispute remains unresolved, Moderna’s new hub provides a rare bright spot. Chief executive Stéphane Bancel called the Oxfordshire facility “the first in the UK to manufacture an onshore supply of mRNA vaccines” and a foundation for Britain’s future health security.
“This centre underscores the UK’s commitment to improving health security, both against global health emergencies and ongoing seasonal respiratory threats,” Bancel said.
