Merck recently announced the closure of its London research hub, a move that will result in the loss of 125 scientific jobs. This decision has drawn criticism, with some attributing it to the UK’s perceived insufficient support for life sciences and a rigid stance on NHS drug pricing. However, the company’s broader job cuts, totaling 6,000 positions globally, may indicate a strategic realignment that extends beyond the UK or US markets to include factors related to competition from China.
Keytruda, Merck’s leading immunotherapy drug introduced in 2014, has been effective in treating various cancers. However, its patent is set to expire in 2028, raising concerns about future revenues. Additionally, new competitors are emerging, such as Akeso Biopharma’s ivonescimab, which has shown superior results in trials and is priced more competitively. The World Health Organization has now categorized PD-1 drugs, including Keytruda, as essential worldwide, without special recognition for Merck’s product.
Experts note that the pharmaceutical sector is shifting from traditional mass-market offerings to more specialized biopharmaceuticals, and China is evolving into a contender in this field, which could impact global competition. The closure of Merck’s UK facility poses challenges for the UK government’s biopharmaceutical strategies, compounded by AstraZeneca cutting back on its own research initiatives in Britain.
Industry leaders, such as Sir John Bell, have expressed concerns that the UK is becoming less appealing for investment, citing the need for increased subsidies, enhanced drug-price caps, and expedited NHS approvals to attract biopharma firms. As companies like AstraZeneca commit more resources to the US market, the UK must reassess its approach to remain competitive and explore potential strengths, particularly in areas like mRNA technology.
Source: https://www.theguardian.com/commentisfree/2025/sep/15/the-guardian-view-on-mercks-exit-britains-biopharma-strategy-stalls-in-the-face-of-chinas-rise