UK Faces Pharma Investment Exodus Amid Trump’s Drug Pricing Pressure

The United Kingdom is under mounting pressure from global pharmaceutical firms as stalled drug pricing negotiations and pulled investments coincide with U.S. President Donald Trump’s “most favored nation” (MFN) drug pricing order. The looming deadline has fueled concerns that Britain may lose its competitive edge in attracting life sciences investment.

Pharma Giants Put UK Investment on Hold

Several multinational drugmakers have announced plans to pause or scrap investments in Britain:

AstraZeneca suspended a planned £200 million ($271 million) expansion of its Cambridge research site, citing reduced government support.

Merck & Co. (MSD in Europe) withdrew from a £1 billion London research center, pointing to the U.K.’s lack of competitiveness and undervaluation of innovative medicines.

Eli Lilly, maker of Zepbound, paused its lab expansion project while awaiting clearer policy signals from the government.

Analysts argue these moves may be part of a coordinated negotiating tactic designed to pressure the U.K. into offering stronger support to the sector.

Trump’s Pricing Order Adds Urgency

Pharma companies have until September 29 to provide the Trump administration with binding commitments to lower U.S. drug prices to levels comparable with other developed nations.

Trump has long criticized Europe for paying significantly less for prescription drugs while investing less in pharmaceutical innovation. His administration has tied upcoming trade and investment deals to reforms that would prioritize U.S. manufacturing and create a more favorable pricing environment for American consumers.

U.K.’s Struggle to Stay Competitive

Despite being home to a world-class research ecosystem, the U.K. is slipping in global rankings for pharma investment. According to the Association of the British Pharmaceutical Industry (ABPI), the country’s foreign direct investment ranking in life sciences dropped from second in 2017 to seventh in 2023.

Industry leaders warn Britain risks losing out to the U.S. and other countries that are making bold policy moves to attract mobile capital.

“The U.S. government is visibly working very hard to win investment into their country. The UK must show the same drive,” said Alex Altmann, partner at consultancy Lubbock Fine.

Fresh data from the Department for Business and Trade (DBT) showed the number of FDI projects in the U.K. fell to 1,375 in 2024/25, down from 1,555 in 2023/24.

What’s Next for the UK?

While recent setbacks paint a challenging picture, analysts argue the U.K. still has the capacity to remain a hub for pharmaceutical innovation — if it can improve its policy environment.

“The U.K. is in a fantastic position to attract more research and win back investment. But it needs to play ball,” noted Jimmy Muchechetere, equity analyst at Investec.

With President Trump’s visit and the MFN drug pricing deadline fast approaching, the next few weeks could prove decisive for the future of Britain’s life sciences sector.