UK (Parliament Politics Magazine) – Big drug companies have paused £2bn in UK investments, blaming low drug pricing support, as job cuts and industry unrest deepen.
As reported by The Guardian, major pharmaceutical firms have scrapped or stalled nearly £2bn in UK projects this year, prompting ministers to confront US President Donald Trump over drug pricing.
US drugmaker MSD’s move to scrap its £1bn London site has derailed the government’s life sciences agenda, once a key economic pillar. Just two days on, AstraZeneca froze its planned £200m research expansion in Cambridge.
Why pharma giants are abandoning UK research hubs?
Four UK pharma projects worth over £1.7bn, including AstraZeneca’s Liverpool site and Eli Lilly’s London lab, have been halted this year.
Britain’s pharma industry has been battered since 2022, with 15 major projects or firms lost through site closures and stock market delistings.
Drugmakers blame the government for low spending on new medicines, warning that weak support is stifling research and innovation in the UK.
MPs on the science committee are set to question MSD’s UK and Ireland head Ben Lucas over the company’s decision on Tuesday.
He is set to appear alongside Tom Keith-Roach, President of AstraZeneca UK; Richard Torbett, CEO of the Association of the British Pharmaceutical Industry; and Lord Patrick Vallance, the UK’s Science Minister and ex-GSK head.
How is Washington pressuring the UK to ease drug pricing rules?
Warren Stephens, the US envoy in London, urged Chancellor Rachel Reeves to offer pharmaceutical companies a more favourable pricing deal during a recent private dinner in the capital.
The move came days ahead of Donald Trump’s visit to the UK. He has previously condemned foreign nations for “freeloading on US innovation”, as drug prices remain among the world’s highest, and firms have faced accusations of price gouging.
How did Guy Oliver link NHS underfunding to patient suffering?
Guy Oliver, UK head of Bristol Myers Squibb, stated that the company terminated 34 NHS collaborations over the past year, citing “chronic underinvestment” in medicines.
He added,
“There is a human cost to all of this. Patients are really suffering, and have been suffering for many, many years now.”
What did drugmakers say after Wes Streeting’s pricing ultimatum was rejected?
After the breakdown of months-long drug pricing talks in late August, pharma firms have grown increasingly vocal, rejecting Health Secretary Wes Streeting’s latest “generous” offer.
Under the UK’s voluntary scheme, pharmaceutical companies pay back part of their revenues to the NHS for branded medicines. The industry claims the 23.5% clawback rate for newer medicines is excessive compared with other European nations.
What did MSD announce about its UK research operations?
US drugmaker MSD (Merck) announced that it is shutting down all its UK research and development operations.
The move will put 125 scientists at the Francis Crick Institute and the London BioScience Innovation Centre out of work.
What did Eli Lilly say about its £279m London lab plan?
US drugmaker Eli Lilly said last week it has put its planned London Gateway Lab, part of a £279m investment, on hold.
The company said it is waiting for more clarity on the UK’s life sciences environment.
What did Paul Naish say about Sanofi’s UK investment plans?
Paul Naish, Sanofi’s UK head of market access, said the French pharma group has put substantial investment plans on hold.
He added,
“This is an intolerable situation for too many [patients] in this country and that is why government needs to work with the sector.”
What did Germany’s BioNTech say about its UK cancer partnership?
The German biotech company BioNTech confirmed that its £1bn, 10-year partnership with the UK government on cancer drug trials is still progressing as planned.
The collaboration has already provided experimental cancer treatments to hundreds of patients, and plans are underway for new research hubs in London and Cambridge.
What did Novartis signal about its future in the UK?
The Swiss drugmaker Novartis is reportedly holding off plans for future investments in UK manufacturing and research.
In 16 years, Novartis has scaled back its UK operations from seven sites and over 4,000 employees to a single London base with 1,200 staff.
Which pharma companies have scrapped or paused UK projects recently?
- Sept 2025: AstraZeneca pauses Cambridge lab (1,000 jobs)
- Sept 2025: Merck scraps London centre (125 jobs)
- Sept 2025: Eli Lilly pauses London Gateway lab
- 2025–26: Haleon closes Maidenhead site (435 jobs)
- July 2025: Indivior delisted (Slough)
- July 2025: Verona Pharma sold to MSD (London)
- July 2025: Adaptimmune sells assets, cuts 62% UK staff
- June 2025: GSK shuts Ulverston factory, Barnard Castle cuts 200 jobs
- Feb 2025: AstraZeneca scraps Speke, Liverpool investment
- Jan 2025: Rentschler Biopharma closes Stevenage site (30 jobs)
- 2024: Sanofi reduces Kymab labs (50 jobs)
- 2023: Recipharm closes Queenborough site (150 jobs)
- 2022: Novartis sells Grimsby site (200+ jobs)