Is Fujifilm investment the start of UK biomanufacturing boom?

The North East of England has been hit with economic challenges and deindustrialization. However, Fujifilm Biotechnologies on Wednesday held the grand opening of its expanded manufacturing and process development facilities in Teesside, UK — serving as the venue for a panel discussion on how biomanufacturing could potentially reshape the UK’s competitive edge in the life sciences industry. 

At the event, Fujifilm’s investment was touted as a “vote of confidence” in the UK as a world-leading location to develop and manufacture advanced medicines and vaccines. Steve Bagshaw, chair of the High Value Manufacturing (HVM) Catapult, a UK initiative meant to bridge the gap between research and commercial application, said the Fujifilm biomanufacturing site in Teesside is unique.

“There isn’t anywhere like this in the UK,” according to Bagshaw. “One of the streams is fitted out and there’s more capacity to expand.” He described Teesside as a “really positive piece of investment by Fujifilm to get us to a situation where as demand increases, you can continue to grow on this site.”

Natraj Ram, vice president of innovation at Thermo Fisher Scientific, told the panel that single-use platforms — such as the 2,000-liter and 5,000-liter bioreactors at Fujifilm’s Teesside site — are fundamentally changing how next-generation therapies move from development to commercialization.

According to Ram, advances in process intensification now enable productivity at the 5,000-liter scale enabling companies to move from clinical to commercial manufacturing on the same platform, while reducing risk, accelerating timelines, and improving capital efficiency.

“We are able to produce about 80% of the commercial needs of the any of the drugs that are coming out with this 5,000-liter bioreactor,” Ram told the panel.

UK sets sights on biomanufacturing

Shaun Grady, chair of AstraZeneca UK and the UK’s BioIndustry Association (BIA), said that there are significant opportunities for biomanufacturing in the country, where medicines and pharmaceutical products remain one of the largest export sectors. 

“Our country has the talent, scientific excellence, and industrial base to lead in advanced biomanufacturing globally — and with the right policy environment, this sector can be a major engine of growth for the UK economy,” Grady said. “This facility is not just a fantastic new site for Fujifilm in the UK. It showcases the North East [of England] as a place to build and scale globally competitive capabilities.”

Grady credited the UK policy landscape for Fujifilm’s investment. He pointed to the Life Sciences Innovative Manufacturing Fund (LSIMF), a British government initiative aimed at supporting businesses in the sector by providing up to £520 million — approximately $709.5 million — in capital grants.

Targeted government investments, such as LSIMF, have been “key in unlocking investments and derisking large-scale commitments,” according to Grady. “Ensuring the scheme is accessible to [small and medium-sized enterprises] and has predictable fund applications has been a priority for the BIA,” Grady added.

At the same time, Grady said BIA has been “clear about the areas” where policy needs to go further including “creating stable long-term incentives to address energy costs.” He called out the British Industrial Competitiveness Scheme, an initiative aimed at reducing electricity costs for over 7,000 businesses in the UK — particularly the manufacturing sector.

Starting in 2027, the effort is expected to cut electricity costs by up to £40 (approximately $54) per megawatt hour, which translates to a potential reduction of up to 25% in energy expenses.

“The scheme will allow the UK to remain a competitive nation for manufacturers to operate within,” Grady said. “It will support companies to develop innovative domestic products to enhance UK medicine security.”

Policy challenges

British Prime Minister Keir Starmer has pointed to major companies such as BioNTech, Bristol Myers Squibb, and Moderna investing billions of dollars in the UK, with his government’s stated goal of becoming Europe’s leading life sciences economy by 2030.

However, the Association of the British Pharmaceutical Industry (ABPI) last year warned that the UK was becoming “un-investable from a global perspective” for pharma companies.

A September 2025 report, produced by Cambridge Economic Policy Associates on behalf of ABPI, found that the UK risks undervaluing life sciences manufacturing investment.

“The official methods used by the UK government to assess the value of innovative life sciences manufacturing may lead the UK to miss out on strategic investments and the jobs and productivity growth they can bring to all regions across the UK,” according to ABPI.

At the panel on Wednesday, Bagshaw said it’s imperative that companies continue to build facilities in the UK such as Fujifilm’s biomanufacturing investment in Teesside.

“You’ve got to take existing life sciences companies and make it attractive to invest in this country,” he added. “Making Britain a place where you can build a half a billion [dollar] investment like this is something you need to do.”

UK-US zero tariff deal

Wednesday’s panel discussion comes on the heels of a December 2025 agreement between Starmer and President Donald Trump to exempt UK-made pharmaceuticals and pharmaceutical ingredients exported to the U.S. from tariffs.

Having secured the deal, Britain is in a better position as it looks to become a global hub for drug R&D and manufacturing, finds two separate reports from credit insurance company Atradius and data and analytics firm GlobalData.

“Zero-tariff access to the U.S., combined with more predictable and generous domestic pricing, gives the UK a rare structural advantage in attracting early launches, clinical trials, and high-value manufacturing,” said Edita Hamzic, healthcare analyst at GlobalData.

Talent pool challenges

If the UK is to become Europe’s leading life sciences economy by 2030, it must sharpen its global appeal and do more to attract and keep world-class talent.

“The future of advanced manufacturing depends on widening our talent pool,” Grady said on Wednesday.

Jonathan Haigh, senior vice president and head of UK site for Fujifilm Biotechnologies, in a press release statement noted that through academic partnerships with the University of Edinburgh, the University of Manchester, and the University of York, the company is building talent in STEM and advanced manufacturing to “nurture the next generation” of life science specialists.

“The products we make are not simple — there’s a very complex technical element to them,” Haigh acknowledged in Wednesday’s panel. “Having 300-plus process development scientists who know and understand the science really helps when they do that handshake with the manufacturing partners — and handshake not just the way to manufacture, but the knowledge around the process.”