GSK to invest £275m into UK manufacturing facilities

GSK is investing £275m at three of its UK manufacturing sites to increase production and support delivery of respiratory and large molecule biological medicines.

The pharmaceutical company’s site at Barnard Castle in County Durham is to receive £92m to fund the construction of an aseptic sterile facility that will support  the manufacture of existing and new biopharmaceutical assets in GSK’s pipeline.

Approximately £110m will provide a new facility for the manufacture of respiratory active ingredients in Montrose, Scotland where the GSK manufactures active ingredients for respiratory, HIV and vaccine products.

In Ware, Herts, £74m will support further expansion of the company’s new Ellipta respiratory inhaler through additional manufacturing capacity at the site.

With approximately 6,000 staff across nine sites, GSK said it views the UK as an attractive location for investment in advanced manufacturing due to factors that include its skilled workforce, technological and scientific capabilities, plus a competitive corporate tax system that includes the Patent Box, a mechanism that encourages investment in R&D and related manufacturing in the UK.

Commenting on today’s announcement, Adrian Tombling, patent attorney and head of the Life Sciences Group at Withers & Rogers, said: “This is a vote of confidence for the UK economy and demonstrates how much has been achieved to create a fiscal and legislative landscape where companies that invest in innovation can thrive.

“The introduction of the Patent Box regime in 2013, which allows businesses to pay significantly less corporation tax on any profits they earn from their patented inventions, is viewed as a major benefit to innovative companies and is helping to balance out any Brexit uncertainties.

“From an intellectual property perspective, there is much to play for in the next two years and there is an opportunity to build on the strong commercial proposition that is attracting big businesses like GSK.”

In addition to jobs associated with the construction of new facilities, today’s announcement will support current employment at these three sites and is expected to lead to the creation of new employment opportunities