UK government commits £74 million to life sciences innovation
The UK government has announced over £74 million in combined government and industry funding to support eight research and development projects focused on transforming pharmaceutical manufacturing and addressing critical healthcare challenges.
The investment, unveiled on 18 November during London Life Sciences Week, aims to strengthen Britain’s position in the global life sciences sector whilst advancing environmental sustainability and clinical innovation.
Sustainable medicines manufacturing receives major investment
More than £54 million will be distributed through the Sustainable Medicines Manufacturing Innovation Programme, a collaboration between government and industry funded via the VPAG Investment Programme. Industry partners are contributing an additional £20 million, bringing total investment to over £74 million across multiple projects.
The funding package supports research into recycling anaesthetic gases, converting spent nuclear fuel into cancer radiotherapies, and implementing artificial intelligence and robotics in pharmaceutical manufacturing facilities. These initiatives form part of the government’s broader Industrial Strategy, which identifies life sciences as one of eight priority sectors for economic growth.
Science and Technology Secretary Liz Kendall said: “The life sciences sector is a core part of our Industrial Strategy for good reason: it turns over £150 billion a year, supports hundreds of thousands of jobs, and is a magnet for investment. Its success will be critical to the economic growth we need, to deliver this government’s mission of national renewal.”
Bacteriophage research addresses antibiotic resistance
The Medicines and Healthcare products Regulatory Agency (MHRA) will receive nearly £1 million from the Engineering Biology Sandbox Fund to address regulatory challenges surrounding engineered bacteriophage products. Bacteriophages are viruses that destroy bacteria and could offer solutions to the growing threat of antibiotic-resistant infections, which cause over one million deaths annually worldwide.
The MHRA will collaborate with five regulatory agencies and the UK Health Security Agency (UKHSA) to develop appropriate regulatory frameworks that facilitate safe innovation whilst maintaining public protection. Professor Mark Sutton, Scientific Leader for Antimicrobial Resistance and Healthcare Biotechnology at UKHSA, said: “We urgently need to find new, innovative ways to treat infections. Engineered bacteriophages have the potential to revolutionise how we combat bacteria that can resist antibiotics.”
Manufacturing projects target environmental impact
The Sustainable Medicines Manufacturing Innovation Programme encompasses diverse research areas. The Circularity and Sustainability in Volatile Anaesthetics project, led by Sagetech Medical Equipment with £2.9 million in funding, will optimise capture, recovery, and remanufacture of volatile anaesthetics currently responsible for approximately four million tonnes of carbon dioxide equivalents annually. This work could save the NHS around £5 million per year whilst reducing environmental impact.
Project Alpha 10.6, co-led by the UK National Nuclear Laboratory and Medicines Discovery Catapult with £9.9 million, explores production of medical treatments from legacy nuclear material, potentially unlocking new cancer therapies. The EcoCAR project, led by Royal Free Hospital with £4.9 million, focuses on developing sustainable CAR-T cell manufacturing processes through single low-volume vessel production.
Digital innovation in pharmaceutical production
AstraZeneca UK Limited leads the Sustainable Future Factory project with £9.9 million in grant funding and £3.9 million from industry. This initiative integrates robotics, automation, artificial intelligence, and data-driven approaches into next-generation pharmaceutical manufacturing technologies. Dr Stella Peace, Managing Director and Executive Director for Healthy Living and Agriculture Domain at Innovate UK, said: “Through Innovate UK’s Sustainable Medicines Manufacturing Innovation Programme, these projects have the potential to transform how medicines are produced in the UK.”
Sector demonstrates strong investment appeal
The funding announcement coincides with broader investment activity in UK life sciences. The British Business Bank committed €30 million to Sofinnova Capital XI, a €637 million pan-European venture capital fund supporting biopharmaceutical and medical technology companies. Barts Health NHS Trust announced plans for the Barts Life Sciences Cluster in Whitechapel, expected to attract over £800 million in investment.
London-based life sciences firms secured £1.6 billion in venture capital investment in 2024, more than triple the amount raised by Paris. The UK life sciences sector supports over 300,000 jobs and generates £150 billion in annual turnover, making it fundamental to both economic growth and public health objectives.
