US pharmaceutical giant Merck is scrapping a planned £1bn expansion of its UK operations, saying the government is not investing enough in the sector.
The multi-national business, known as MSD in Europe, said it would move its life sciences research to the US and cut UK jobs, blaming successive governments for undervaluing innovative medicines.
One science industry expert told the BBC that, following Merck's decision, many major pharmaceutical companies could stop investing in the UK.
A spokesperson for the government defended its investments in science and research, but acknowledged there was "more work to do".
Pharmaceutical companies have been refocusing on investing in the US following pressure from President Donald Trump, including threats of sky-high tariffs on drug imports.
