Major pharmaceutical companies have paused or scrapped nearly £2bn in planned UK investments this year, sparking concerns over patient care and job losses. The moves come as ministers prepare for talks with US President Donald Trump amid a dispute over drug pricing.
US drugmaker MSD announced last week it would abandon its £1bn London research centre, while AstraZeneca halted a £200m expansion of its Cambridge facilities. Combined with a scrapped AstraZeneca project in Liverpool and a shelved Eli Lilly lab in London, four projects worth over £1.8bn have been pulled or paused in 2025.
Pharma companies blame the government for insufficient spending on new medicines, arguing that high clawback rates under the voluntary scheme for branded medicines make the UK unattractive for investment. The minimum repayment rate of 23.5% on newer drugs is far higher than in other European countries.
Bristol Myers Squibb's UK head Guy Oliver told the Times that the company had cancelled 34 partnerships with the NHS in the past year due to “chronic underinvestment”, causing “suffering” for patients. The US ambassador to the UK, Warren Stephens, recently urged Chancellor Rachel Reeves to offer better pricing deals.
MPs will question MSD and AstraZeneca executives on Tuesday, alongside industry representatives and Science Minister Lord Vallance. The government says its door remains open for further talks but sticks to its previous offer.
