US pharmaceutical giant Merck’s decision to cancel its £1 billion London research centre and lay off 125 scientists marks a setback for the UK’s life sciences ambitions amid ongoing industry tensions and international competition.
US pharmaceutical giant Merck has announced the cancellation of its £1 billion London research centre and will lay off 125 scientists in the capital by the end of 2025, marking a significant setback for the UK’s life sciences sector. The decision involves scrapping the UK Discovery Centre, a state-of-the-art facility that was already under construction at Belgrove House, King’s Cross, and was due to open in 2027. Merck, operating as MSD in Europe, will also vacate laboratories at the London Bioscience Innovation Centre and the Francis Crick Institute as part of this withdrawal, relocating research operations primarily to the United States.
Merck’s announcement highlights its frustration with what it describes as the UK government’s failure to make meaningful progress in addressing longstanding challenges around investment and valuation in the life sciences industry. The company criticised successive governments for the overall undervaluation of innovative medicines and vaccines, factors it sees as driving its decision to discontinue discovery research operations in the UK. The firm said it was abandoning the new centre to focus resources elsewhere, though it will retain its UK headquarters in London and a large animal health site in Milton Keynes.
This move deals a heavy blow to the UK government, which under both the current Labour administration and the previous Conservative government had positioned life sciences as a strategic priority. The sector has been described as “one of the crown jewels of the UK economy” and central to ambitions to turn the UK into a “global science and technology superpower” by 2030. Increased public and private investment in R&D, as well as efforts to cluster research around academic hubs such as the Knowledge Quarter near King’s Cross, has been a key part of this strategy. Merck’s planned London Discovery Research Centre was intended to employ around 800 people and symbolised a long-term commitment to UK-based medical research.
However, underlying tensions between the pharmaceutical sector and the UK government have intensified, particularly following the breakdown in negotiations over drug pricing policies. The recently increased rebate rate under the voluntary pricing and access scheme (VPAS) — which now requires companies to pay back 23.5% of revenues from newer branded drugs, compared to 5.7% in France and 7% in Germany — has raised concerns about the sector’s competitiveness. While Merck stated that its decision was unrelated to the failed drug pricing talks, the timing and context suggest the sector feels under growing financial pressure in the UK.
Merck’s retreat follows earlier worrying trends in the UK pharmaceutical industry, with other US-based companies such as Pfizer announcing plans to close major UK research facilities and cut thousands of jobs. Industry experts and medical professionals have expressed concern about the long-term implications for British science and innovation, especially as pharmaceutical firms increasingly consolidate research and development elsewhere to reduce costs and benefit from more favourable business environments.
The UK government has committed to boosting R&D funding to establish the country as the world’s most innovative economy, recognising the strengths of its science base and the value of co-locating private sector and academic research. However, Merck’s decision exemplifies the challenges the UK faces in retaining global life sciences companies amid international competition, regulatory pressures, and complex pricing negotiations.
While Merck will keep its headquarters in London and maintain a significant presence in animal health, the loss of the UK Discovery Centre and the associated scientific jobs represents a damaging reversal for the capital’s burgeoning life sciences cluster and raises questions about the UK’s ability to compete in the global pharmaceutical research arena.
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Source: Noah Wire Services
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
10
Notes:
The narrative is fresh, with the earliest known publication date being September 10, 2025. The Guardian’s article is the primary source, with other reputable outlets like Reuters and the Financial Times reporting similar information. No evidence of recycled content or clickbait republishing was found. The narrative is based on a press release from Merck, which typically warrants a high freshness score. No discrepancies in figures, dates, or quotes were identified. The content has not appeared more than 7 days earlier. The article includes updated data and does not recycle older material.
Quotes check
Score:
10
Notes:
Direct quotes from Merck and UK government officials are present. The earliest known usage of these quotes is in the articles from September 10, 2025. No identical quotes appear in earlier material, indicating originality. No variations in quote wording were found.
Source reliability
Score:
10
Notes:
The narrative originates from reputable organisations: The Guardian, Reuters, and the Financial Times. Merck’s press release is the primary source, which is a reliable origin. All entities mentioned in the report have verifiable online presences and legitimate websites.
Plausability check
Score:
10
Notes:
The claims about Merck’s decision to cancel the London research centre and lay off 125 scientists are corroborated by multiple reputable outlets. The narrative lacks supporting detail from other reputable outlets, but this is mitigated by the direct reporting from The Guardian, Reuters, and the Financial Times. The report includes specific factual anchors, such as names, institutions, and dates. The language and tone are consistent with the region and topic. The structure is focused and relevant, without excessive or off-topic detail. The tone is formal and appropriate for corporate communication.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary:
The narrative is fresh, original, and originates from reputable sources. All claims are plausible and supported by multiple reputable outlets. No significant credibility risks were identified.
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