Why Big Pharma Is Pulling £2 Billion of Life Sciences Investment from the UK


Nearly £2 billion in investments scrapped or paused


In just the past year, several global pharma giants have walked away from major UK projects:

  • Merck (MSD) cancelled plans for a £1bn research centre in London
  • AstraZeneca paused a £200m expansion in Cambridge
  • Eli Lilly shelved a £279m new lab in London


Altogether, that’s almost £2bn of investment lost, along with hundreds of high-value jobs and future R&D opportunities.


What’s driving this retreat?

According to industry leaders, three big issues are making the UK less attractive:

  1. The “medicine levy” (VPAG scheme)
  2. Companies are being asked to pay back 23–35% of their revenues to the government under current rules. Pharma leaders say this is far higher than other European nations and makes the UK “un-investable.” (ABPI, March 2025)
  3. Drug pricing and access
  4. Pharma companies argue that the way the NHS values and pays for new medicines doesn’t reward innovation. Without fair pricing, companies say it’s difficult to justify big UK investments.
  5. Policy uncertainty
  6. With mixed signals from government about long-term support for life sciences, global boards are choosing safer bets elsewhere in countries like the US and Germany where incentives are clearer and more stable.


Why it matters

Life sciences isn’t just “big pharma.” It covers medicines, vaccines, biotech, and health technologies that directly impact all of us. If investment drops:

  • The UK loses out on jobs and research breakthroughs
  • Patients may see slower access to new treatments and clinical trials
  • The UK risks falling behind international competitors


What needs to change

If the UK wants to live up to its ambition of being a “science superpower,” action is needed now:

  • Fairer, more predictable pricing models that support innovation
  • A rethink of the medicine levy to bring it in line with international standards
  • Closer collaboration between Government, NHS, and industry to create a stable and attractive environment for research and manufacturing

The warning from pharma leaders is clear: unless the UK changes course, it risks becoming un-investable.

https://www.linkedin.com/pulse/nearly-2-billion-investments-scrapped-paused-gemma-scorer-a0rpe