American pharmaceutical company MSD, known as Merck in the United States, has announced it will cancel its planned £1 billion expansion in the UK, citing insufficient government investment in the sector. The company stated it will shift its life sciences research operations to the U.S. and eliminate more than 100 jobs in the UK due to what it perceives as a lack of value placed on innovative medicines by successive UK governments.
Construction had already commenced on a new site in London’s King’s Cross, with completion anticipated in 2027. MSD has indicated it will not occupy this site and will withdraw from its laboratories in the London Bioscience Innovation Centre and the Francis Crick Institute by year-end, resulting in 125 job losses.
A UK government spokesperson defended the country’s investments in science and research, recognizing that further efforts are necessary. The pharmaceutical industry has recently shown a tendency to pivot towards U.S. investments, influenced by pressures from the Trump administration, including potential tariffs on drug imports.
MSD’s decision follows similar moves by other pharmaceutical companies, such as AstraZeneca, which also retracted a £450 million investment in a vaccine manufacturing facility earlier this year, citing reduced government support. Concerns have been raised by industry leaders regarding the declining competitiveness of the UK market, particularly in light of ongoing negotiations over drug pricing.
Despite this, some industry sources assert that the UK remains an attractive hub for investment, thanks to its academic environment and infrastructure for research. A spokesperson for the UK government emphasized ongoing initiatives to bolster the life sciences sector, including substantial financial commitments aimed at stimulating private investment. They expressed awareness of the impact of MSD’s decision on employees and affirmed the government’s readiness to assist those affected.
Source: https://www.bbc.com/news/articles/ckgzyxjr0lzo?at_medium=RSS&at_campaign=rss