Merck Abandons £1 Billion London Research Centre Amid Investment Concerns

On September 10, 2025, Merck, known as MSD in Europe, announced the cancellation of its plans to establish a £1 billion research centre in London, citing the UK's challenging business environment. The company will relocate its research operations primarily to existing sites in the United States, impacting approximately 125 staff members in the UK. The planned UK Discovery Centre at the Belgrove House site, which was under construction and set to open in 2027, was expected to employ around 800 workers, including 180 scientists.

The GuardianReutersMerck scraps £1bn London research centreDigital JournalThe Telegraph - UK

Merck's decision reflects broader concerns regarding the UK’s life sciences sector, particularly the lack of investment and the undervaluation of innovative medicines and vaccines by successive UK governments. The company stated that the UK has not made "meaningful progress" in addressing these issues, leading to its conclusion that "the UK is not internationally competitive." This sentiment is echoed by industry leaders who have expressed that the UK is increasingly viewed as "uninvestable" due to high NHS clawback rates and restrictive access to medicines.

The Telegraph - UK

The withdrawal is a significant setback for the UK’s life sciences ambitions, which the government has described as "one of the crown jewels of the UK economy." The Association of the British Pharmaceutical Industry (ABPI) reported that foreign investment in the UK’s life sciences has decreased by 58% from 2017 to 2023. The decline in investment has been attributed to a slowdown in research and development growth, which fell to 1.9% annually in 2020, down from 6.3% in the previous three years.

The Guardian

In response to Merck's announcement, a government spokesperson acknowledged the "concerning news" and emphasized the need for further work to enhance the UK's attractiveness for investment. The spokesperson reiterated that the UK has become the "most attractive place to invest in the world," despite the challenges highlighted by Merck.

Digital Journal

Critics, including Richard Torbett, CEO of the ABPI, have voiced concerns that without a more competitive environment for investment, the UK risks losing its position as a leader in developing new medicines and vaccines. The recent breakdown of negotiations between the government and pharmaceutical companies over drug pricing has further exacerbated these concerns, with companies like AstraZeneca also pulling back on investments in the UK.

The Telegraph - UK

The UK government has set ambitious targets to position the country as the leading life sciences economy in Europe by 2030 and third globally by 2035. However, the recent decisions by major pharmaceutical companies to withdraw or reduce their investments raise questions about the feasibility of these goals. The government is under pressure to address the concerns of the pharmaceutical industry to prevent further declines in investment.

The Guardian

• “Simply put, the UK is not internationally competitive.” — Merck Statement

Digital Journal

• “Richard Torbett, chief executive of the Association of the British Pharmaceutical Industry (ABPI), said: “This is a real blow to the UK’s life sciences ambitions.” — Richard Torbett, CEO of the ABPI

The Guardian

• “the UK has become the most attractive place to invest in the world, but we know there is more work to do.” — Government Spokesperson

Digital Journal

• “Rippon Ubhi, who runs Sanofi’s UK and Ireland business and the French company’s speciality care division, said: “The findings in this report paint a concerning picture for UK patients and our economy.” — Rippon Ubhi, Sanofi UK and Ireland Business Head

The Guardian