Merck to cancel London drug research center, lay off scientists : FT

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Richard Drury

Merck (NYSE:MRK [https://seekingalpha.com/symbol/MRK]) has canceled plans for a £1B research center in London and will lay off over 100 scientists, the Financial Times reported on Wednesday.

This decision comes amid criticism from the industry that the UK government is making the country less competitive and not paying enough for medications.

The company will reportedly [https://www.ft.com/content/5ace49a8-47ab-409d-8909-6edb107ce71a]cut 127 jobs and halt the construction of the center, which was expected to open in King’s Cross in 2027.

Merck has expressed concerns that the UK will fall behind Europe in health research funding unless it improves investment conditions. “Simply put, the UK is not internationally competitive,” the company said, according to FT.

This move follows AstraZeneca's (AZN [https://seekingalpha.com/symbol/AZN]) recent decision to abandon a £450M expansion of a vaccine plant in Speke, northwest England.

Merck, in 2017, planned for the King’s Cross facility as part of a new UK headquarters. The company had anticipated hiring many more scientists before the center's opening.

Despite these layoffs, Merck will continue to conduct clinical trials in the UK and maintain around 1,600 employees working on development programs and other areas like regulatory affairs and business development, the report said.

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