Merck has decided to halt all research operations in the United Kingdom and cancel plans for a $1.3 billion drug discovery lab in London, citing insufficient progress and an unfriendly environment for pharmaceutical R&D investments. This move follows warnings from the Association of the British Pharmaceutical Industry (ABPI) that the UK risks becoming a "contagion risk" for global investors due to waning support and unfavorable pharmaceutical pricing policies. Merck's exit signals serious challenges facing the UK's life sciences sector in retaining and attracting major pharmaceutical investment amidst policy and funding concerns.