No profit, no investments.... funny how that works
Blow for UK drugs sector as Merck scraps £1bn expansion
US pharmaceutical giant Merck is scrapping a planned £1bn expansion of its UK operations, saying the government is not investing enough in the sector.
The multi-national business, known as MSD in Europe, said it would move its life sciences research to the US and cut UK jobs, blaming successive governments for undervaluing innovative medicines.
One science industry expert told the BBC that, following Merck's decision, many major pharmaceutical companies could stop investing in the UK.
A spokesperson for the government defended its investments in science and research, but acknowledged there was "more work to do".
Pharmaceutical companies have been refocusing on investing in the US following pressure from President Donald Trump, including threats of sky-high tariffs on drug imports.
Merck had already begun construction on a site in London's King's Cross which was due to be completed by 2027, but said it no longer planned to occupy it.
The company will also vacate its laboratories in the London Bioscience Innovation Centre and the Francis Crick Institute by the end of the year, which will lead to 125 job losses.
A spokesperson for the drug company said the decision "reflects the challenges of the UK not making meaningful progress towards addressing the lack of investment in the life science industry and the overall undervaluation of innovative medicines and vaccines by successive UK governments".
'Global uncertainty'
Speaking in the House of Commons, science minister Ian Murray said Merck's decision was "deeply disappointing" but that it was "a commercial decision for them".
The company recently announced 125 job losses and $3bn (£2.2bn) per year cost cuts.
Mr Murray said global economic pressures and the US trade policy had compounded its problems.
He added that pharmaceutical companies were getting a lower proportion of NHS drugs spending due to the actions of previous Conservative and coalition governments.
However, Conservative shadow science secretary Julia Lopez said the message from Merck bosses was "unsparing".
"Simply put, the UK is not internationally competitive", she said.
"The government must wake up, and do so now."
The firm, known as MSD in Europe, said there has been a lack of investment in life sciences.
www.bbc.com