Merck Abandons London Research Center, Citing UK's Lack of Life Sciences Investment

As of September 11th, 2025, the UK's life sciences sector is facing a setback as U.S. pharmaceutical giant Merck has abandoned its plans for a new research center in London. Merck had already started building the new laboratories near Kings Cross, with an expected opening in 2027, but has now decided to walk away from the project.

The decision reflects the ongoing challenges facing the UK's life sciences industry. Earlier this year, the country's largest drugmaker, AstraZeneca, scrapped plans for a new vaccine plant in the UK, and the government has been embroiled in a dispute over drug pricing with the pharmaceutical sector.

In its statement, Merck cited "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." The company's move is also likely influenced by the threat of tariffs and other pressures from the U.S. government, which has been pushing for more manufacturing to return to the United States.

The UK government has defended its record on attracting investment, citing a Deloitte survey that named the country the "most attractive place to invest in the world." However, the government acknowledges that "more work needs to be done" to support the life sciences sector. The government has committed £520 million to a manufacturing fund to unlock private investment, but the industry remains concerned about the country's business environment.

The Association of the British Pharmaceutical Industry has warned that Britain's ranking for foreign direct investment in the sector has fallen from second in 2017 to seventh in 2023, and that the UK is "increasingly being ruled out of consideration as a viable location for pharmaceutical investment."