US drugmaker Merck, known as MSD in Europe, has scrapped plans for a £1bn expansion in London, announcing it will shift its research focus back to the United States. The move, which will result in the closure of facilities at the London Bioscience Innovation Centre and the Francis Crick Institute, is expected to cut 125 jobs. The company accused successive UK governments of undervaluing innovative medicines and failing to deliver the investment needed to support life sciences.
The King’s Cross development, which was already under construction and due for completion in 2027, will now remain empty. Merck said its decision reflects the UK’s lack of progress in supporting the sector and a system that has become less competitive for pharmaceutical companies. Industry figures warned that other major players could follow suit, with Oxford’s Sir John Bell cautioning that several global firms are now reluctant to invest in Britain.
Critics point to the NHS’s reduced spending on medicines, which has fallen from 15% of healthcare budgets a decade ago to just 9%, compared with an OECD average of 14–20%. Richard Torbett of the Association of the British Pharmaceutical Industry described Merck’s withdrawal as a “wake-up call”, urging urgent reforms to restore confidence in the UK market.
This is the latest in a string of setbacks for the sector. AstraZeneca has already diverted major investment to Ireland, while Novartis has warned that patients could miss out on cutting-edge treatments due to Britain’s declining competitiveness. Despite strong academic foundations, experts say political pressures in the US and limited UK incentives are reshaping where pharmaceutical companies choose to base their research.
