Global pharmaceutical companies are scaling back their presence in the United Kingdom as pressure mounts from the Trump administration’s looming drug pricing order. Merck, AstraZeneca, and Eli Lilly are among the firms that have either pulled out or paused planned investments, citing reduced government support and heightened uncertainty in the sector. The moves come as the industry braces for regulatory changes that could reshape global pricing strategies.

The retreat by major firms highlights growing concerns about the competitiveness of the UK’s pharmaceutical industry. Analysts say the combination of domestic policy shifts and external pressures from the US has created a climate of hesitation, prompting companies to reassess their long-term commitments. With Britain already struggling to attract large-scale investments post-Brexit, this development adds another layer of strain to an industry that contributes billions to the economy.

Industry leaders warn that reduced investment could have serious implications for jobs, research, and development. Pharmaceutical firms have historically viewed the UK as a hub for clinical trials and innovation, but the recent pullback raises questions about the country’s ability to maintain that status. Observers also note that the uncertainty may push firms to redirect funds toward more supportive markets in Europe or Asia.

The looming drug pricing order from Washington is another key factor driving these decisions. The Trump administration has signaled its intent to force down the cost of prescription drugs, a move that could reverberate across international markets. For firms like Merck and AstraZeneca, this means recalibrating strategies to safeguard profitability while navigating shifting regulatory landscapes in both the US and UK.

As the pharmaceutical standoff intensifies, pressure is mounting on the UK government to step up support for the sector. Industry groups have urged ministers to provide clearer policies, financial incentives, and assurances to stem further losses. Without such measures, experts fear Britain risks losing its competitive edge in a rapidly changing global pharmaceutical market.

Source: CNBC.