Manufacturing
Once seen primarily as a market for imported generics, the UK is now building a stronger domestic base in production and supply. This shift matters. A robust manufacturing sector not only secures medicine availability against global shocks but also supports economic growth, skilled jobs and innovation in pharmaceutical processes. Around a quarter of the off-patent medicines used by the NHS are made in finished form here in the UK. More than 20 manufacturing facilities already operate across the UK, providing crucial investment and jobs nationwide.
Manufacturing support
A sizeable proportion of medicines are already manufactured in the UK, and there is scope to expand this further.
The government has recognised both the resilience and economic benefits of domestic manufacturing and has committed investment through the Life Sciences Innovative Manufacturing Fund (LSIMF).
This capital grants programme aims to strengthen UK capacity in medicines, diagnostics and medical technologies by supporting businesses to invest in advanced manufacturing projects.
The off‑patent sector has already benefited, with investments channelled to companies such as Wockhardt, Piramal and Accord Healthcare – the largest volume supplier of medicines to the NHS.
Manufacturing barriers
While around a quarter of NHS medicines are manufactured domestically, these facilities depend heavily on active pharmaceutical ingredients (APIs) and key starting materials sourced globally. Regulatory barriers also undermine competitiveness.
Critically, the absence of EU recognition of UK licensing and batch testing decisions is a major disincentive: medicines tested in the UK must be retested in the EU, adding cost and delay. This asymmetry makes the UK a 'rule taker' and discourages investment, as EU‑approved medicines enjoy access to both the EU and UK markets, while UK‑approved products are confined to the UK alone.
This imbalance in recognition contributes to investment decisions. For example, over the past six years, nearly 40 new or expanded generic pharmaceutical plants have been established across Europe, representing up to £4 billion in investment. By contrast, UK capacity has grown only modestly.
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