Cancer medicine manufacturing plant in Newcastle to expand after £50m government investment

The new plant will continue to produce lifesaving cancer medication for the NHS. Credit: ITV Tyne Tees

A medicine manufacturing company in Newcastle will benefit from a new £50 million government deal to expand the manufacture of its drugs for the NHS.

Accord Healthcare in Fawdon in Newcastle is one of the largest suppliers of chemotherapy products in Europe and will use the cash to expand its premises and create a new plant in the city.

Today's announcement comes days after chancellor Rachel Reeves delivered her first Budget on Wednesday.

The new Life Sciences Innovative Manufacturing Fund was launched by Ms Reeves today and will help to finance new product lines for a novel cancer drug and two autoimmune injectables.

Speaking at the plant in Fawdon, Ms Reeves said: "Accord has invested £50 million, securing hundreds of jobs here in Newcastle.

"That's an endorsement of what this government have done, both to stabilise the economy, but also our growth focus: partnering with businesses to unlock good jobs and productivity growth in all parts of the country, including here in the North East."

The agreement with Accord will create more than 50 skilled jobs in the region, as well as boosting manufacturing.

Chancellor Rachel Reeves delivered her first Budget on Wednesday. Credit: PA Images

Once opened, the factory will produce cancer drugs for the NHS to use.

The Treasury said the plant will "support efforts to shore up" the UK's supply of medicines and "will enable Accord to continue producing and supplying lifesaving medicines for oncology and autoimmune diseases".

Accord Healthcare's executive vice president Paul Tredwell 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.

"Mr Tredwell added: "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."

Want a quick and expert briefing on the biggest news stories? Listen to our latest podcasts to find out What You Need To Know...