Merck Abandons £1bn London Research Hub and Cuts 125 Jobs in Blow to UK Life Sciences

Published: 11 September 2025 | The English Chronicle Online

The United States pharmaceutical giant Merck has cancelled plans for a £1bn research centre in London and confirmed it will cut 125 scientific roles in the capital this year, delivering a sharp setback to Britain’s ambitions in the life sciences sector.

The abandoned project, known as the UK Discovery Centre, was being built at Belgrove House, opposite St Pancras and King’s Cross stations. Originally intended to open in two years and employ around 800 people, including 180 scientists, the site will now remain unfinished. Merck, which operates under the name MSD in Europe, also announced it will vacate laboratories at the London Bioscience Innovation Centre and the neighbouring Francis Crick Institute by the end of 2025, ending its research presence in the area.

In a statement, the New Jersey-based company said it would discontinue discovery research operations in Britain and no longer proceed with its King’s Cross hub. The firm criticised successive UK governments for failing to support investment in the life sciences industry and for undervaluing innovative medicines and vaccines. Industry insiders have also pointed to political pressure from Washington, where Donald Trump has urged pharmaceutical companies to expand operations at home.

The decision comes amid growing concern that the UK is losing ground in the global race for pharmaceutical investment. According to the Association of the British Pharmaceutical Industry (ABPI) and PwC, investment in UK life sciences has slowed dramatically since 2018. Annual growth in research and development funding has slipped from 6.3 percent in the years before 2020 to just 1.9 percent afterwards, well below the global average of 6.6 percent. In 2023, investment even declined by nearly £100m. Foreign investment has also collapsed, falling from £1.9bn in 2017 to £795m in 2023, which pushed Britain down from second to seventh place globally.

The UK has also slipped in clinical trials, ranking eighth in 2023 for late-stage studies of new medicines compared with fourth in 2017. Although there were signs of slight improvement last year, industry leaders warn that confidence in the country’s pharmaceutical environment is eroding.

Richard Torbett, chief executive of the ABPI, described Merck’s retreat as a serious blow to Britain’s aspirations. “No one wants to hear that successful and innovative companies like MSD are reducing their investment and footprint in the UK,” he said. Rippon Ubhi of Sanofi UK echoed those concerns, warning that global boardrooms increasingly view Britain as “uninvestable” because of high NHS clawback rates and barriers to patient access. Executives at Novartis have voiced similar frustrations, citing excessive costs and warning of delays in medicine launches.

Government ministers have defended the UK’s position, pointing to surveys showing that Britain remains an attractive destination for investment, while insisting reforms are under way. The health secretary, Wes Streeting, has pledged not to allow pharmaceutical companies to “rip off” taxpayers, while Chancellor Rachel Reeves has said the UK remains at the forefront of scientific progress. The government has set targets to make the UK Europe’s leading life sciences hub by 2030 and the world’s third largest by 2035.

Despite these ambitions, industry data shows the UK lags behind rivals. Only 37 percent of new medicines are made fully available to patients in Britain, compared with 90 percent in Germany, while more than 60 medicines failed to launch or were delayed between 2019 and 2023. Without stronger incentives for investment, experts warn that Britain risks losing its edge in one of the most strategically important sectors of the economy.