Business
Merck scraps £1bn expansion in the UK over lack of state investment
Faarea Masud, Rachel Clun and Simon JackBusiness reporters
Getty ImagesUS pharmaceutical giant Merck is scrapping the planned £1bn expansion of its UK operations, saying the government is not investing enough in the sector.
The multi-national business, known as MSD in Europe, said it would move its life sciences research to the US and cut more than 100 UK jobs, blaming successive governments for undervaluing innovative medicines.
A spokesperson for the government defended its investments in science and research, but acknowledged there was “more work to do”.
Pharmaceutical companies have been refocusing on American investments following pressure from US President Donald Trump, including threats of sky-high tariffs on drug imports.
MSD had already begun construction on its site in London’s King’s Cross which was due to be completed by 2027, but said it no longer planned to occupy it.
The company will also vacate its laboratories in the London Bioscience Innovation Centre and the Francis Crick Institute by the end of the year, which will lead to 125 job losses.
A spokesperson for the drug company said the 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”.
Richard Torbett, chief executive of the Association of the British Pharmaceutical Industry, said the decision was “an incredible blow”.
“We’ve really got to see it as a wake up call to try and understand what is driving companies to make these difficult decisions and what can we do to turn that round,” he told the BBC’s Wake Up To Money programme.
“The lack of competitiveness of the UK is the big thing that’s driven the decision,” he added.
“We’ve got great strengths in this country – we’ve got fantastic academic institutions, good infrastructure, amazing medical research charities – but we’ve got systematic under-investment in the products that come out of the end of innovation.”
MSD is the latest pharmaceutical company to abandon or reduce investment plans in the UK.
In January, AstraZeneca walked away from plans to invest £450m in expanding a vaccine manufacturing plant in Merseyside earlier this year, blaming reduced government support.
The UK boss of another pharmaceutical giant warned last month that NHS patients would lose access to cutting-edged treatments because Britain was “largely uninvestable”.
Norvartis’s Johan Kahlstrom said the company had “already been unable to launch several medicines” in the country due to the “declining competitiveness” of the UK market.
Industry sources told the BBC the industry had been attracting major funding in the hub around Kings Cross focused on the intersection between life sciences and AI.
They pushed back on claims that the decision was linked to ongoing negotiations over drug prices, in which industry has been lobbying hard for the NHS to approve more and pay more for medicines.
The current pricing regime was set and agreed to by drug companies in 2023 – less than 18 months ago.
Since then, drug companies have come under pressure from the Trump administration to lower drug prices for US customers and to invest more in the US – affecting their ability to invest elsewhere.
In an August interview with CNBC, Trump suggested that tariffs on pharmaceuticals imported to the US could reach up to 250%.
The threat followed an executive order signed by the president in May aimed at reducing drug prices for American consumers.
Dr David Roblin, chief executive of London-based biotechnology company Relation Therapeutics, told the BBC that the fundamentals that drove MSD to invest in the UK in the first place had not changed.
“The academic environment in the UK continues to produce innovative ideas and people to run with those ideas, which attracts foreign investment,” he said.
“The environment to do research is still outstanding: we’ve got great academics, the NHS does provide a research platform, for example the UK Biobank is proving to be a real attractor for companies like mine,” he said.
What has changed, Dr Roblin said, was the political landscape in the US which big pharma has to respond to, “because the US remains the largest market for pharmaceuticals on earth,” he added.
A spokesperson for the Department of Industry, Science and Technology said: “The UK has become the most attractive place to invest in the world, but we know there is more work to do.
“We recognise that this will be concerning news for MSD employees and the government stands ready to support those affected.”
Last Updated:
Indian benchmark indices opened higher on Wednesday, tracking positive global cues.
Sensex Today
Sensex Today: Indian benchmark indices — Sensex and Nifty — ended higher on Wednesday, tracking positive global cues and investor optimism ahead of the US Federal Reserve’s policy outcome. Sentiment was further lifted by reports suggesting that US President Joe Biden may soon finalise a trade deal with India.
The BSE Sensex climbed 368.97 points, or 0.44%, to close at 84,977.13, while the NSE Nifty50 gained 117.7 points, or 0.45%, to end at 26,053.9.
Broader markets also advanced, with the NSE Midcap 100 rising 0.64% and the Nifty Smallcap 100 up 0.43%.
Barring Nifty Auto, all sectoral indices closed in the green. Nifty Oil & Gas led the gains, up 2.12%, followed by Energy, Metal, Media, Bank, Financial Services, IT, Pharma, FMCG, and Consumer Durables.
Among Sensex constituents, NTPC, Power Grid, Adani Ports, HCL Tech, and Tata Steel were top gainers, while Bharat Electronics, Eternal, Mahindra & Mahindra, Maruti Suzuki, and Bajaj Finance ended as major laggards.
Ponmudi R, CEO, Enrich Money, said: “The Nifty50 marked its third straight day of gains, reflecting continued bullish sentiment. However, the index faces resistance around the 26,050–26,100 range, with support at 25,900–25,660. As long as it sustains above 25,800, the trend remains positive. A decisive move above 26,100 could drive an extended rally toward 26,250–26,400, while a drop below 25,900 might trigger mild profit-taking at higher levels.”
Global Cues
Asian markets traded mixed on Wednesday as investors awaited the US Federal Reserve’s policy announcement, where a second consecutive 25-basis-point rate cut is widely expected. Markets have nearly priced in the move, which would lower the federal funds rate to 3.75–4.00 per cent.
Japan’s Nikkei climbed over 1 per cent to a fresh record high, while the Topix was flat and South Korea’s Kospi added 0.17 per cent. Australia’s ASX 200 slipped 0.16 per cent after Q3 inflation rose to 3.2 per cent, the fastest pace in over a year. Hong Kong markets remained closed for a public holiday.
On Wall Street, major US indices hit new record highs overnight — the S&P 500 rose 0.23 per cent, Nasdaq gained 0.80 per cent, and the Dow advanced 0.34 per cent — as investors positioned ahead of the Fed decision.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
October 29, 2025, 09:15 IST
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Keiron TourishBBC News NI north west reporter
BBCIt’s not easy out there for families living through the cost-of-living crisis – and that’s why a new scheme in County Tyrone is offering free baby clothes in a bid to support people facing hardship.
The project in Strabane, funded by the Department for Communities, will be available to any family with children up to five years old.
It will also support people with nappies, baby and family toiletries for a nominal fee, but that can be waived in certain circumstances.
Karen Brown, a health visitor with the Western Trust, said the HiVe Baby Hub and free clothing exchange aims to support families in “one of the most socio-economically deprived areas in the entire UK”.
The project, which involves the Western Trust, the GP Federation and a local community project, will operate from the Grass Roots Centre on John Wesley Street.
Families can be referred to the service through their health visitor, family nurse and social workers or even call into the centre themselves.
The project also aims to reduce the environmental impact of clothing waste through recycling.
What does the Strabane baby clothes scheme offer?
Ms Brown, who came up with the idea, said she sees first-hand the needs of parents locally.
“The cost-of-living crisis has hit an awful lot of families hard, so this is a great initiative where we can help.
“Families who have that wee bit extra can also donate if they like.”
To support struggling families, the project already operates a wellness café and a social supermarket where people can purchase groceries at a discounted price if they are part of the membership scheme.
It also offers help with a range of services from money management to learning how to cook and grow your own vegetables.
Ms Brown said that as well as offering a free clothing exchange, it’s also a hygiene hub, which can “help with baby toiletries, nappies and anything really that a parent is going to need to look after their child”.
Ursula Doherty, from the Strabane Community Project, said people are struggling to meet the cost of baby hygiene products and clothes, and the exchange was a great initiative because it focuses on re-using and recycling.
“We do live in a very throw-away society, so it’s a great project in order to take it from landfill,” she said.
She added that people are going through real hardship.
“More and more families are finding it hard to make ends meet – food, fuel and even baby items.
“That’s right across the board. That’s people who are working and people who are on benefits. Everybody.
“In an ironic way it has equalised us all because everybody is suffering, so it’s always about looking at new initiatives.”
Derry and Strabane Deputy Mayor Niree McMorris said it was an amazing initiative.
“They have things like the clothes exchange, which is taking things out of landfill and putting them back into the community for re-use.
“In the Baby Hub, young families can avail of nappies and hygiene products.
“Everything you need to take care of your child. And also hygiene products for the mammy as well, so I think that’s really important.
“It’s amazing to see the good work that they’re doing here.”
The wait is finally over for over 1 crore central government employees and pensioners. The Union Cabinet, led by Prime Minister Narendra Modi, has officially approved the Terms of Reference (ToR) for the 8th Central Pay Commission (CPC). The Commission is expected to submit its recommendations within 18 months from the date of its formation. (Image: AI-Generated)
The Central Pay Commission is set up every few years to review and revise salary structures, retirement benefits, and service conditions. (Image: AI-Generated)
Historically, a new Pay Commission is implemented roughly every 10 years. (Image: AI-Generated)
The salary hike depends largely on the fitment factor, which is a multiplier used to calculate the revised basic pay. In the 7th Pay Commission, the fitment factor was 2.57, raising the minimum basic salary from Rs 6,000 to Rs 18,000. (Image: AI-Generated)
For the 8th Pay Commission, different fitment factors are being considered. Here’s how they could impact salaries: if the fitment factor is set at 1.83, the basic salary could rise from Rs 18,000 to around Rs 32,940. A slightly higher factor of 1.86 would increase it to Rs 33,480. However, if the government applies a more generous fitment factor of 2.47, the revised basic pay could reach Rs 44,460. These figures help illustrate how significantly the fitment factor influences salary revisions under the Pay Commission. (File Photo)
Gross salary includes Basic Pay, Dearness Allowance (DA) – linked to inflation, revised twice a year, and House Rent Allowance (HRA) – based on city category (30% for metro cities, 20% for Tier-2 cities, and 10% for Tier-3 cities). (Image: AI-Generated)
Let’s calculate the gross salary using a fitment factor of 2.47 and assuming: Basic Pay: Rs 44,460; DA: Rs 0 (for simplicity); HRA (30% for metro): Rs 13,338. The New Gross Salary = Basic Pay + DA + HRA, which is 44,460 + 0 + 13,338 = Rs 57,798. (Image: AI-Generated)
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