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.”
Trainline has seen shares surge higher after it boosted its earnings outlook despite a hit from the Government’s move to expand “tap-in and tap-out” contactless payment across more UK stations.
The online ticketing platform notched up an 8% rise in UK net consumer ticket sales to £2.1 billion in the six months to the end of August, thanks to a bounce back in demand for leisure travel and commuting, and as year-earlier trading was impacted by strike action.
But it said it took a hit from the first phase of the Department for Transport’s rollout of the contactless payment network to more stations, allowing passengers to tap-in and tap-out with bank cards and pay the guaranteed best fare available at that time of day.
Consumer revenues were flat at £107 million, it added.
In spite of this, London-listed Trainline – which also has operations across Europe – said it now expects full-year underlying earnings at the top end of its previous guidance, for between growth of 6% and 9%.
Shares in the FTSE 250 firm soared as much as 13% on Thursday morning trading, as it also cheered investors with plans to bolster returns with up to another £150 million in share buybacks.
Jody Ford, chief executive of Trainline, said: “Trainline has delivered a robust performance in the first half and today announces improved guidance for the full-year alongside an enhanced £150 million share buyback programme.”
He added: “Rail liberalisation in Europe continues to demonstrate the value Trainline brings as the pre-eminent domestic aggregator, most recently in south-east France where increased carrier competition between Paris, Lyon and Marseille has driven second quarter sales growth of 34%.”
In the update ahead of interim results in November, Trainline said overall group revenues lifted 2% to £235 million in the first half, as net ticket sales rose 8%.
The firm said it was keeping guidance unchanged for full-year group-wide growth of 0% to 3% for revenues and 6% to 9% for net ticket sales.
Russ Mould, investment director at AJ Bell, said: “The shares had been weak this year amid concerns about new competitive threats in the UK, but the trading update is a reminder that Trainline is a bigger beast.
“France is acting like a rocket for the company’s sales growth and that is helping to offset pockets of weakness elsewhere.
“The overall tone is upbeat and that’s exactly what the market needed to hear to get the share price moving higher again.”
Business
‘First Tranche Of Agreement By November’: Union Minister Piyush Goyal On US-India Trade Talks
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Piyush Goyal announced the first tranche of the India-US trade deal should be finalised by November 2025.
Commerce Minister Piyush Goyal (Image: PTI/File)
Union Minister Piyush Goyal on Thursday indicated that the first tranche of the agreement with the United States on a trade deal should be finalised by November 2025.
Speaking at a news conference in Patna, he said, “In February 2025, Prime Minister Narendra Modi and President Trump together instructed us that the ministers of both sides should make a good agreement by November 2025. The first part of that agreement, the first tranche, should be finalised by November 2025, and since March, discussions have been going on on this subject very seriously in a very good environment, progress is being made, and with the progress, both sides are satisfied.”
Earlier, US President Trump in a post on Truth Social had indicated that there was a thaw in the tug of war over tariffs imposed on India, saying that the two countries are continuing negotiations to address trade barriers.
“I am pleased to announce that India and the United States of America are continuing negotiations to address the Trade Barriers between our two nations. I look forward to speaking with my very good friend, Prime Minister Modi, in the upcoming weeks. I feel certain that there will be no difficulty in coming to a successful conclusion for both of our Great Countries!” he posted.
Trump’s remark came days after he called the India-US ties a “very special relationship” and affirmed that he and PM Modi would always be friends, asserting that there is “nothing to worry about”.
Prime Minister Narendra Modi then endorsed the US President’s remarks saying that trade talks between India and the United States would help “unlock the limitless potential” of the partnership.
In a post on X, PM Modi said, “India and the US are close friends and natural partners. I am confident that our trade negotiations will pave the way for unlocking the limitless potential of the India-US partnership. Our teams are working to conclude these discussions at the earliest. I am also looking forward to speaking with President Trump. We will work together to secure a brighter, more prosperous future for both our people.”
New Delhi is facing global uncertainties due to heightened economic tensions following the US imposition of a 50 per cent tariff on Indian imports, including an additional 25 per cent due to its purchase of Russian crude oil, which, according to Washington, fuels Moscow’s efforts in its conflict with Ukraine.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
September 11, 2025, 13:55 IST
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Gold prices in Pakistan remained stable on Wednesday, with one tola priced at Rs388,100, following a record high the previous day, according to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA).
The rate for 10 grams of gold also stayed steady at Rs332,733, reflecting a pause in market fluctuations.
In the international market too, gold remained steady at $3,654 per ounce, hovering close to its all-time high.
Supported by expectations that the US Federal Reserve may resume rate cuts at its upcoming policy meeting after softer-than-expected inflation data.
Silver prices also stayed unchanged, with one tola selling for Rs4,358.
Commenting on the global outlook, Interactive Commodities Director Adnan Agar said gold was “near the low of its all-time high” but its next course would depend on the US inflation data.
“If inflation eases, it will fuel hopes of a Fed rate cut and work in gold’s favour,” he noted.
However, Agar cautioned that gold was overbought, making the market prone to a correction of $80 to $100 before moving towards $3,700.
“If prices continue to rise without a correction, the eventual pullback could be much sharper – possibly in the range of $200 to $250,” he warned.
Spot gold was up 0.5% at $3,644.49 per ounce, as of 11:06 am EDT (1506 GMT), after hitting a record high of $3,673.95 on Tuesday.
According to Reuters. US gold futures for December delivery were up 0.1% at $3,684.10.
US producer prices unexpectedly fell in August, pulled down by a decline in the cost of services, the Labour Department data showed.
Meanwhile, the Pakistani rupee extended its upward streak against the US dollar, posting a slight gain in the inter-bank market.
The local currency closed at 281.60 per dollar, up by a nominal one paisa from the previous day’s close at 281.61.
This marked the rupee’s 24th consecutive session of appreciation against the greenback.
In global markets, the US dollar held steady as investors awaited key US inflation data in the current week, which is expected to shape the Federal Reserve’s upcoming policy decision.
Following a weak jobs report last week that reinforced expectations of a rate cut at the Fed’s September 16-17 meeting, the debate now centres on whether the reduction will be 25 or 50 basis points.
The outcome will hinge on inflation trajectory, particularly the impact of tariffs on US prices.
Producer price inflation figures were due on Wednesday, followed by the consumer price index on Thursday.
Trainline shares accelerate on rosier earnings outlook
Tariffs may raise prices of apparel by 36.2% in US in short run: TBL
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