(qlmbusinessnews.com . Thu 25th Sep, 2025) London, UK —
Moderna's Major UK Investment Highlights Urgent Call for Higher NHS Medication Budget
In order to avert the exodus of pharmaceutical investment from the UK, Science Minister Patrick Vallance has emphasised the need for the National Health Service (NHS) to increase its expenditure on medications.
This declaration comes against a backdrop of major global pharmaceutical companies either delaying or abandoning their UK ventures in recent times. Industry observers attribute this retreat to factors such as the relatively low pricing of new medications in the UK, insufficient government funding, and the imposition of tariffs by US President Donald Trump.
In a conversation with the Reporters, Lord Vallance underscored that raising drug prices is an essential step towards addressing this issue. He noted, however, that determining the source of additional funding required to accommodate higher prices remains a challenge for the Department of Health and the Treasury.
Lord Vallance's remarks were made during the inaugural event for Moderna’s new facility in Oxfordshire, where the American vaccine powerhouse will manufacture millions of flu and Covid-19 vaccines.
Health Secretary Wes Streeting, who officiated the opening on Wednesday, revealed ongoing discussions between government departments and the pharmaceutical industry concerning drug pricing strategies.
“It's crucial we reach some form of agreement… this is not only beneficial for the economy but also for patient care,” Lord Vallance stated.
The government has highlighted Moderna’s investment of over £1 billion in UK research and development as part of a decade-long partnership aimed at fostering new treatment solutions, job creation, and enhanced pandemic preparedness. This commitment starkly contrasts with recent developments, such as Merck cancelling a £1 billion project in Liverpool and AstraZeneca halting a £200 million investment in Cambridge.
In a recent statement, Novartis warned that NHS patients might be deprived of innovative treatments due to escalating costs, citing “systemic barriers” that deter significant new investments in the UK. Similarly, pharmaceutical giant Eli Lilly expressed to the Financial Times that the UK ranks as the least favourable European country in terms of drug pricing.
Statistics reveal a decline in the UK’s medicines spending from 15% of the NHS budget to 9% over the past decade, while other developed nations allocate between 14% and 20% of their healthcare budgets to pharmaceuticals.
Furthermore, President Trump has been advocating for reduced drug prices and increased pharmaceutical investments within the US.
Negotiations between Streeting and pharmaceutical companies regarding the pricing of medications in the UK recently reached an impasse. At that time, the UK government claimed to have made a “generous and unprecedented offer” aimed at stimulating growth within the pharmaceutical industry.
Despite previously taking a firm stance against pharmaceutical companies overcharging taxpayers, Streeting adopted a more reconciliatory tone, highlighting the ongoing nature of the discussions involving not just the UK industry but also the US.
“There lies a synergy between the government’s ambitions for growth, health, trade, and its bilateral relations with the US,” he added.
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