Core Viewpoint - Merck & Co (MSD) has abandoned its plans for a £1 billion R&D center in London and will cease drug discovery and research efforts in the UK, significantly impacting the national life sciences sector [1][2]. Company Actions - MSD will terminate its UK-based R&D operations by the end of this year, resulting in job losses for 125 scientists at the London Bioscience Innovation Centre and the Francis Crick Institute [2]. - The decision aligns with MSD's "multi-year optimisation" plan aimed at cutting global operational costs by $3 billion by 2027, following underperformance in H1 2025 [3]. Industry Context - The UK life sciences sector is facing challenges, with MSD citing a lack of meaningful progress in addressing investment issues as a reason for its cuts [3]. - The UK Government's perceived undervaluation of innovative medicines and vaccines has also contributed to MSD's dissatisfaction, a sentiment echoed by AstraZeneca [4]. - The broader pharmaceutical industry is experiencing a decline in foreign direct investment, which fell by 58% from 2021 to 2023 [6]. Government Relations - Ongoing tensions between Big Pharma and the UK Government regarding NHS drug pricing have created a stalemate, with potential negative implications for patient access to new drugs if agreements are not reached [7].