By: Claire Wilson. Last Updated: July 2023

Image: Danone UK

North West Pharmaceutical Industry and MedTech Sector at a Glance

BTW, if you are interested in a career in pharmaceutical manufacturing, check out our University Certificate in Pharmaceutical and Medicinal Product Manufacturing

A Key Part of the “Northern Powerhouse”

In 2017, the UK Government published the Life Science Industrial Strategy, billed as “A report to the Government from the life sciences sector” which contained “recommendations for our world leading life sciences industry to drive growth, increase productivity, improve the use of data, reinforce our science base, deepen our skills and secure benefits for patients throughout the United Kingdom”.

This was closely followed by the Life Sciences Sector Deal, a set of agreements that was seen as phase one of implementing the Strategy’s recommendations.

“The deal brings together the government with universities, charities and more than 25 businesses – large and small – to make a joint commitment to invest in all parts of the United Kingdom.”
Life Sciences Sector Deal (2017)

Then, in 2018, the Life Sciences Sector Deal 2 was published, described as further agreements that “deepens our partnership with industry, universities and charities”.

In these documents, developing clusters of industry activity throughout the country (especially in support of existing life science activity) was seen as a high priority. One of the areas highlighted in the reports is the “Northern Powerhouse”.

The Northern Powerhouse includes the North West, North East, and Yorkshire regions – they account for 15 million people and one million private sector businesses. If this area were a country, it would be amongst the biggest economies in Europe.

In the Northern Powerhouse area, there are over 1,000 life science and healthcare companies. Employees in the life science sector here now account for 21% of the UK’s total life science workforce, having grown by over 9% since 2012.

In 2015, the area exported £7.3bn in pharmaceutical products – 45% of all medicinal exports.

By 2017, the value of the sector to the Northern Powerhouse region was estimated to be over £13.6bn – with more investment already secured (including £1.6bn over 5 years from the Northern Health Science Alliance in response to the first Life Sciences Sector Deal).

While the government talks more broadly about the Northern Powerhouse, we also think it’s useful to think about clusters and activities at a regional level, so the rest of this post will only consider the life science sector in the North West…

Local Clusters In The North West Hub

Even while we talk about the North West as a hub, it’s important to understand that there are several smaller localised clusters throughout the region, each with its own speciality. These include:

Cheshire

The Macclesfield area of Cheshire is a well-established manufacturing cluster with companies including AstraZeneca (the 10th biggest pharmaceutical company in the world based on 2019 revenue).

Cheshire is also home to Alderley Park, “the UK’s largest single site life science campus”. The 400 acre site hosts 4 national institutions, 2000 innovators, and has attracted £247m investment. Most recently it was chosen as a site for a Lighthouse Laboratories (a network of laboratories involved in the diagnostic testing for COVID-19) and a Validation Centre of Excellence. It even has its own podcast series.

Lancaster

Home to Lancaster University’s Health Innovation Campus and Centre for Ageing Research, the Innovation Agency, and the MRC North West Hub for Trials Methodology Research, Lancaster has established itself as a “national leader in applied health research”.

Liverpool

Liverpool has a long history of pharmaceutical manufacturing – in the 1940s, it was chosen by the UK Government as the site for the largest penicillin manufacturing plant in the world.

Speke was the site of the first commercial production of a biologic with Eli Lilly’s manufacture of insulin. And the area has gone on to become one of Europe’s leading bio-manufacturing clusters employing over 1,830 people in companies such as Allergan, AstraZeneca, Elanco, and Seqirus (check out our company profiles section below for more detailed information). The big name companies manufacturing here are supported by a growing biotechnology community, healthcare companies, and a “strong analytical and clinical supply presence”.

Invest Liverpool highlights 3 key criteria that make the area such an appealing prospect for the life science industries:

  • Deep regulatory expertise – manufacturing teams across the region have worked with regulators such as the MHRA for many years
  • Dynamic pool of workers – with such a concentration of companies, there is a “dynamic talent pool of experienced staff” at all levels
  • Strong local supply-chain – small and medium sized companies serving the sector in a variety of ways from medical packaging to specialist logistics

LIverpool is also home to Knowledge Quarter Liverpool (KQ Liverpool), described as “the largest cluster of science, health, education and cultural minds in the region” from institutions and organisations including the University of Liverpool, Liverpool School of Tropical Medicine, Liverpool John Moores University, Liverpool Science Park, Sensor City, Accelerator, the new £429m Royal Hospital and the £157m Clatterbridge Cancer Centre.

Over the next 5-years, a further £2bn investment is predicted for KQ Liverpool.

Manchester

Manchester has a strong reputation for research and spin-outs. It is proudly the “Home of Graphene”, and the permanent location for Cancer Research UK’s Manchester Institute (which has temporarily relocated to Alderley Park after a fire in 2017).

The city is also home to Manchester Science Park – a campus with over 150 science and tech companies, and Citylabs Campus – the “largest clinical academic campus in Europe” that brings together the NHS, academic, the scientific community, and industry.

The Life Science Activities Of The North West

Taking all these local clusters into consideration, the North West forms quite a distinctive life science hub.

There is currently an encouraging diversity to the life science industry activities across the North West.

Graph showing regional life science subsectors

Image from: BioCity UK Life Science Start-Up Report (2019)

The area has taken a strong and well established reputation for manufacturing and continued to build on that, especially within the high-value area of biopharmaceuticals. In addition, there has been a move towards earlier stages of the drug development process – the North West is now home to over 30% of the UK’s contract research organisations (CROs).

Chart showing location on CROs across UK

Image from: BioCity UK Life Science Start-Up Report (2019)

Similarly, the area is increasing in strength as a result of now attracting start-ups as well as large multinationals. The graph below charts the number of start-ups across multiple regions of the UK.