Merck Scraps £1 Billion London Hub in Fresh Blow to UK

Merck & Co. is terminating its early drug research in the UK and pulling out of plans for a £1 billion ($1.4 billion) London research hub, blaming the move on the government’s failure to invest enough in the life sciences sector and underpaying for new drugs.

The US drugmaker said Wednesday it will no longer occupy a new building in the UK capital that would have employed 800 people, and plans to vacate labs at the Francis Crick Institute by the year end. The move will eliminate 125 jobs, and marks the latest setback for the country’s domestic pharmaceutical industry.