Britain Defends Investment Record as Merck Cancels London Research Centre

The UK government has defended its track record on attracting investment after U.S. drugmaker Merck announced it would abandon plans for a new £1 billion research centre in London. The decision, disclosed late Wednesday, comes despite construction already being underway near Kings Cross, with an expected 2027 opening.

Merck Cites Policy and Valuation Concerns

Merck, known as MSD in Europe, said the move reflects challenges in the UK’s life sciences environment, citing persistent undervaluation of innovative medicines and vaccines by successive governments. The company highlighted a lack of meaningful progress in fostering investment and innovation within the sector.

Impact on UK Life Sciences Sector

The news follows AstraZeneca’s earlier decision to cancel plans for a UK vaccine facility, adding to concerns over Britain’s attractiveness as a global pharma hub. Analysts also point to growing geopolitical pressures, including U.S. President Donald Trump’s push for reshoring drug manufacturing, which may have further influenced Merck’s decision.