Britain’s life sciences sector is at risk of losing further investment after US drugmaker Merck scrapped plans for a £1bn research centre in London, according to Sir John Bell, one of the UK’s leading scientists.
Bell, who played a key role in the Oxford/AstraZeneca Covid-19 vaccine rollout, said he has spoken to several pharmaceutical executives in recent months, and all voiced concerns about operating in the UK. “They’re not going to do any more investing in the UK,” he told BBC Radio 4’s Today programme.
Merck’s Withdrawal
Merck, known as MSD in Europe, confirmed this week it was abandoning its planned London R&D hub, with the loss of 125 science jobs. The company blamed successive governments for failing to value innovative medicines and vaccines, citing the UK’s lack of progress on life sciences investment.
For industry experts, the decision represents a significant blow to Britain’s ambition of becoming a global hub for biotech and pharmaceuticals, especially after Brexit.
Drug Pricing and NHS Spending
Bell pointed to the NHS’s shrinking share of spending on medicines as a major factor deterring investment. A decade ago, 15% of the UK’s healthcare budget went on pharmaceuticals; today, it is 9%. By contrast, most OECD nations spend between 14% and 20%.
“The large companies do have to work in a system where they can sell their products,” he said. “If they can’t sell them here, they’ll go somewhere else.”
Breakdown With Government
Negotiations between the government and drugmakers over pricing collapsed last month. Under the voluntary pricing and access scheme (VPAS), companies must rebate a large proportion of UK revenues from branded drugs. Current rates run from 23.5% to 35.6%, compared with 5.7% in France and 7% in Germany.
The Association of the British Pharmaceutical Industry has warned the system is undermining competitiveness, leaving the UK out of step with other major European markets.
Lessons From the Past
Bell argued the UK has resolved similar issues before. In 2011, then-prime minister David Cameron created the Cancer Drugs Fund to ensure patients had access to expensive but innovative medicines. That move, he said, restored confidence at a time when Britain risked falling behind on cancer treatments.
“We have great science in academia, great biotech companies and government-funded infrastructure,” Bell said. “But without large companies, it isn’t going to work.”
Global Pressures
The challenges are compounded by international trends. In the United States, drugmakers face mounting pressure to cut prices under political scrutiny, limiting their ability to offset losses in smaller markets like the UK.
Bell, who recently stepped down as president of the Ellison Institute of Technology, warned that unless Britain takes bold steps, pharmaceutical companies will direct investment to countries offering a more supportive environment.
