Merck Cancels £1bn UK Expansion Amid Insufficient State Investment
Merck (MSD) abandons its £1bn life sciences project in the UK, relocating research to the US and cutting 125 jobs, citing underinvestment by UK governments.
US pharmaceutical leader Merck, trading as MSD in Europe, has scrapped its £1bn expansion plan for UK life sciences operations, saying successive governments have undervalued innovative medicines.
The company will shift research activities to the US and close its London Bioscience Innovation Centre and Francis Crick Institute labs by year-end, cutting 125 UK jobs. Construction at the King's Cross site, scheduled to finish in 2027, will not proceed as planned.
Industry warns of wider fallout
Sir John Bell, regius professor of medicine at Oxford, told the INLIBER Today programme that several major firms have paused UK investments over low NHS spending on drugs. Current pharmaceutical spending in the NHS has fallen to 9% of total healthcare costs, compared to 14–20% in other OECD countries.
Richard Torbett, head of the Association of the British Pharmaceutical Industry, described Merck's decision as "an incredible blow" and called it a wake-up call to address the UK's declining competitiveness and underinvestment in end-stage drug innovation.
Political and market pressures
US policies under former President Trump, including threats of 250% tariffs on drug imports and executive orders to lower domestic prices, have pushed pharma firms to prioritise US facilities. Meanwhile, UK drug pricing frameworks were agreed less than 18 months ago.
Despite the setback, biotech executives like Dr David Roblin of Relation Therapeutics highlight the UK's strong academic environment and NHS research infrastructure, such as the UK Biobank, which continue to attract foreign investment.
Government response
A Department for Business, Energy and Industrial Strategy spokesperson said the UK remains "the most attractive place to invest in the world" but acknowledged more work is needed. The government pledges support for affected MSD employees.
Merck's withdrawal underscores the critical need for sustained public investment and competitive pricing in the UK's life sciences sector.
This topic was reported by BBC News.
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