Merck Abandons $1.4-Billion Research Centre in UK Due to Lack of Investment and High Drug Prices.

Merck, a US pharmaceutical giant, has dropped plans to build a $1.4-billion research centre in the UK due to a lack of investment in the industry and undervaluation of medicines and vaccines by the UK government. The company will no longer take possession of Belgrove House in King's Cross and will close two London labs by the end of the year, leading to 125 job losses. Merck cited the UK's lack of competitiveness as the reason for the decision.

Merck & Co. Inc. (MRK) has reportedly scrapped its plans to establish a £1.4 billion ($1.87 billion) research centre in the UK, citing a lack of investment in the industry and undervaluation of medicines and vaccines by the UK government. The company will no longer take possession of Belgrove House in King's Cross and will close two London labs by the end of the year, resulting in 125 job losses. Merck cited the UK's lack of competitiveness as the reason for the decision Merck Reportedly Scraps Research Centre In UK: Retail Sees Stock Rallying To $97.50^[1].

The decision comes amidst ongoing negotiations between drug makers and the UK Health Secretary Wes Streeting on medicine prices. However, Merck stated that its decision to scrap the London research centre was not directly related to these negotiations. Instead, the company emphasized the need for the UK to improve its ability to attract and retain investment in the life science industry Merck to scrap London drug research centre^[2].

The move is part of a broader trend of pharmaceutical companies shifting their research and development efforts to the US. This shift is driven by the Trump administration's tariff threats and pressure to move more manufacturing to the US. In a statement, Merck said that the UK's lack of progress in addressing the lack of investment in the life science industry and the overall undervaluation of innovative medicines and vaccines by successive UK governments was a significant factor in its decision Merck Reportedly Scraps Research Centre In UK: Retail Sees Stock Rallying To $97.50^[1].

On Stocktwits, retail sentiment around MRK stock fell from 'neutral' to 'bearish' territory over the past 24 hours, while message volume remained at 'normal' levels. A Stocktwits user expects the stock to reach $97.50, implying a reasonable upside from its current trading levels Merck Reportedly Scraps Research Centre In UK: Retail Sees Stock Rallying To $97.50^[1].

Meanwhile, in the United States, Merck faces a September-end deadline to reduce the cost of its medicines as Trump pushes drugmakers to lower the cost of drugs in the U.S. to the levels paid by other developed nations. According to data from Koyfin, 15 of the 37 analysts covering Merck rate it 'Buy' or higher, while 12 rate it 'Hold'. The average price target for the stock is $102.33, representing an upside of over 22% Merck Reportedly Scraps Research Centre In UK: Retail Sees Stock Rallying To $97.50^[1].

MRK stock is down by 16% this year and by 27% over the past 12 months Merck Reportedly Scraps Research Centre In UK: Retail Sees Stock Rallying To $97.50^[1].

References:
Merck Reportedly Scraps Research Centre In UK: Retail Sees Stock Rallying To $97.50^[1] Stocktwits, "Merck-reportedly-scraps-research-centre-in-uk," accessed September 10, 2025, https://stocktwits.com/news-articles/markets/equity/merck-reportedly-scraps-research-centre-in-uk/chwkKULRdut
Merck to scrap London drug research centre^[2] Reuters, "Merck scraps London drug research centre," accessed September 10, 2025, https://www.reuters.com/business/healthcare-pharmaceuticals/merck-scrap-london-drug-research-centre-2025-09-10/