Nikhil Prasad Fact checked by:Thailand Medical News Team Sep 21, 2025 9 hours, 14 minutes ago
Pharma News: Major Investment Plans Abandoned or Suspended
Big pharmaceutical firms have put on hold or cancelled nearly £2 billion in planned UK investments so far in 2025, sparking concern over Britain’s appeal as a hub for life sciences innovation. Among the most significant losses is MSD’s cancelled £1 billion London research centre, AstraZeneca’s decision to halt a £200 million expansion in Cambridge, and Eli Lilly’s suspension of its London Gateway Lab, part of a £279 million project. In all, four major projects valued at more than £1.8 billion have been paused or scrapped this year, underscoring how fragile the sector’s confidence in the UK has become. Throughout this period, multiple companies have cited concerns about the UK’s regulatory climate, pricing schemes, and wider policy environment. This
Pharma News report highlights how pharmaceutical leaders increasingly believe that innovation is not being rewarded appropriately, driving them to look elsewhere for investment opportunities.
Big Pharma Pauses UK Projects Amid Policy Uncertainty
Political Fallout and Government Response
The string of cancellations has placed the government’s life sciences ambitions under pressure. Ministers are preparing for a tense meeting with US president Donald Trump, who has accused foreign governments of benefiting from American innovation while undercutting pharmaceutical companies with strict pricing rules. Within the UK, firms have expressed dissatisfaction with the medicines pricing, access and growth (MPAG) scheme, particularly the minimum clawback rate of 23.5 percent applied to newer medicines. Pharmaceutical executives argue that this figure is considerably higher than in many European countries, making the UK less attractive for launching and trialling new drugs.
Economic and Human Costs
The financial impact of these decisions is considerable, but the human cost is also striking. MSD’s cancelled London research centre means the loss of about 125 scientific roles, many of them linked to institutions such as the Francis Crick Institute and the London BioScience Innovation Centre. AstraZeneca’s withdrawn Cambridge expansion was projected to create nearly 1,000 jobs, while its earlier abandoned vaccine facility in Speke, Liverpool, represented an additional £450 million loss. Eli Lilly’s suspended project similarly halts opportunities for both scientific progress and job creation. Patients stand to lose as well, as fewer clinical trials, delayed R&D programs, and reduced partnerships with the NHS may slow the development of much-needed medicines.
UK Risking Innovation Exodus
Pharmaceutical firms are holding back for several reasons. Price controls and steep clawback rates are undermining profits, while the regulatory environment for new medicines is considered unpredictable. Industry leaders also argue that government support, whether through tax breaks, incentives, or streamlined processes, has not been stro
ng enough to compete with rival markets. Without reforms, executives warn that companies will increasingly choose other countries for their large-scale projects.
Government Pushback and Possible Revisions
In response, government officials have insisted that the UK remains committed to fostering life sciences growth and that their existing proposals are fair. Still, they acknowledge ongoing discussions with industry leaders and have left the door open to revisions of current pricing agreements. Parliamentary hearings are expected soon, with top executives from AstraZeneca, MSD, and other leading firms set to testify before the science, innovation and technology committee. Adding to the pressure, the US ambassador to the UK has urged the chancellor to make the market more attractive ahead of Trump’s high-profile visit.
Study Findings and Data Highlights
In 2025 alone, more than £1.8 billion in investment has been withdrawn or delayed across four major projects. MSD cancelled its £1 billion London research hub, cutting 125 planned positions. AstraZeneca scrapped a £200 million Cambridge expansion, along with a £450 million Liverpool facility, costing nearly 1,000 jobs. Eli Lilly has frozen its £279 million London Gateway Lab initiative. The industry’s central grievance is the 23.5 percent clawback rate on new medicines, a figure executives argue is unsustainable compared with European benchmarks.
Conclusion
The wave of cancellations and delays represents more than just lost pounds; it signals a loss of confidence in the UK’s ability to serve as a leader in global life sciences. With billions of pounds in investment already gone, thousands of potential jobs abandoned, and vital drug development slowed, the consequences are far-reaching. Unless the government acts decisively to revise pricing structures, ease regulatory barriers, and provide competitive incentives, the exodus of pharmaceutical investment could accelerate. This would not only damage the economy but also directly affect patients, who risk longer waits for lifesaving treatments. The stakes are clear: without swift reforms, Britain’s reputation as a centre for scientific progress may fade into history.
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