US drugmaker Merck scraps £1bn London research centre and cuts 125 science jobs | Pharmaceuticals industry

The manufacturer of American drugs Merck has removed a London research center of 1 billion pounds sterling and throws 125 scientists from the capital this year, in a hard time for the important sector of the country’s life.

The government of Keir Starmer described the life sciences as “one of the jewels of the British economy crown” while the previous conservative government had promised to transform the country into a “global superpower of science and technology” by 2030.

The new planned laboratory building, called the United Kingdom Discovery Center, on the Belgrove house site opposite St Pancras and King’s Cross Stations, was already under construction and should open its doors in two years.

As part of its U-turn, the manufacturer of medicines, known as MSD in Europe, will leave London Bioscience Innovation Center neighboring London, which welcomes more than 60 life science companies, and the Francis Crick Institute neighboring by the end of 2025, with the loss of around 125 scientific jobs.

Merck, based in New Jersey, said that it would move research operations to other sites. We do not know where in the world would be, but pharmaceutical companies are under pressure from Donald Trump to invest more in the United States. The company refused to provide more details.

In a statement, MSD announced “its intention to stop research operations on discovery in the United Kingdom and that it no longer plans to occupy the site of Maison Belgrove in King’s Cross”.

He added: “This … reflects the UK challenges not to make significant progress towards the fight against lack of investment in the life sciences industry and the overall undervaluation of drugs and innovative vaccines by successive British governments.”

MSD had previously declared that the new research center would be based on its 100-year heritage in the United Kingdom, near the London knowledge district as well as its headquarters in Moorgate. It will retain its head office as well as a large animal health site in Milton Keynes.

Long negotiations on the cost of drugs for the United Kingdom between the government and the industry broke last month. As part of the pricing and voluntary access regime (VPAG), companies agree to reimburse a certain number of income which they draw from more recent and brand drugs. In 2023, the discount rate increased to 23.5%, which compared to 5.7% in France and 7% in Germany.