Merck Abandons $1 Billion UK Expansion Amid Government Criticism Over Investment Shortfall

Merck Scraps $1 Billion UK Expansion Amid Government Criticism In a surprise move, American pharmaceutical giant Merck & Co., known as MSD outside the US, has abandoned its planned $1 billion expansion of operations in the UK, citing inadequate government investment in the sector. The decision will result in over 100 job losses and the vacating of two major research facilities. According to sources close to the company, Merck had already begun construction on a new site in London's King's Cross, which was set to be completed by 2027. However, the company has now decided not to occupy the facility, instead opting to relocate its life sciences research to the US. The move will also see the closure of laboratories at the London Bioscience Innovation Centre and the Francis Crick Institute by year-end. "We are disappointed that successive governments have undervalued innovative medicines," a Merck spokesperson said in a statement. "This decision reflects the challenges of the UK not investing enough in science and research." The company's decision to scrap its UK expansion comes amid growing pressure from US President Donald Trump, who has threatened to impose sky-high tariffs on drug imports. Pharmaceutical companies have been refocusing their investments on American markets, where regulatory environments are seen as more favorable. Industry analysts point out that the UK government's failure to provide sufficient funding for research and development has made it increasingly difficult for pharmaceutical companies to operate in the country. "The UK's investment in science and research has not kept pace with other major economies," said Dr. Emma Jones, a leading expert on pharmaceutical policy at the University of Oxford. In response to Merck's decision, a government spokesperson defended its investments in science and research, acknowledging that there was "more work to do." However, the move is likely to raise concerns about the UK's ability to attract and retain major pharmaceutical companies. The impact of Merck's decision on the UK economy will be significant. The company's planned expansion would have created hundreds of jobs and generated billions in revenue for the country. Instead, over 100 workers will lose their positions, and the UK will miss out on a major investment opportunity. As the UK prepares to leave the European Union, the loss of Merck's expansion plans is seen as a blow to the country's post-Brexit economic prospects. The government will need to reassess its approach to attracting and retaining major pharmaceutical companies if it hopes to maintain the sector's growth and competitiveness. Merck's decision to scrap its UK expansion marks a significant shift in the company's strategy, with a focus on American markets now firmly established. As the global pharmaceutical landscape continues to evolve, one thing is clear: governments must invest more in science and research if they hope to attract and retain major players in the sector. *Reporting by Bbc.*