The dream of London becoming a global “science city” is turning sour as pharmaceutical giants walk away from major investments. The recent decisions by MSD to scrap its £1bn research hub and by Eli Lilly to pause its new lab project have dealt a significant blow to the capital’s ambitions to be a world-leading life sciences hub.
These moves are not being made in a vacuum. They are a direct response to a UK market that industry leaders find increasingly unattractive. A senior executive from Sanofi, which has also reduced its UK operations, called the country a “terrible place to sell medicines,” citing low spending and outdated regulations.
The problem for London, and the UK as a whole, is that global capital for life sciences is highly mobile. Eli Lilly’s decision to pause its London lab while building two in China and operating three in the US is a clear example of how investment is flowing to more commercially favourable locations.
To revive the “science city” dream, policymakers must address the industry’s core complaints. This means developing a competitive new deal on drug pricing, increasing NHS spending on innovation, and creating a stable, predictable environment for long-term investment. Without these changes, London’s potential may go unfulfilled.
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