(Reuters) – Merck said on Wednesday it was scrapping research operations in London, citing the UK’s challenging business environment, and would relocate the research activity to existing sites primarily in the United States.
The U.S. drugmaker no longer plans to occupy the Belgrove House site at King’s Cross, which was due to open in 2027. The move will impact about 125 staff members.
Pharmaceutical companies have been shoring up investments in the U.S. amid the Trump administration’s tariff threats and pressure to move more manufacturing to the U.S.
Merck said its 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.”
The company intends to also vacate laboratories occupied at the London Bioscience Innovation Centre and the Francis Crick Institute by the end of 2025.
Merck earlier this year announced a series of major U.S. investments, including a $1-billion facility in Delaware to produce biologics and its blockbuster cancer drug Keytruda, which is expected to create over 4,500 jobs.
The plant is slated to be operational by 2028, with experimental drug production starting by 2030.
Merck also opened a $1-billion facility at its North Carolina site in March.
The company’s animal health unit will also invest $895 million to expand its Kansas manufacturing and R&D site, part of a broader $9 billion U.S. investment through 2028.
(Reporting by Siddhi Mahatole in Bengaluru and Michael Erman in New York; Editing by Anil D’Silva and Shailesh Kuber)
