Prime Highlights
- GSK launched a £1.9 billion savings programme to accelerate drug development.
- The company plans to start 25 late-stage clinical studies by the end of 2026.
Key Facts
- GSK is a British pharmaceutical company focused on vaccines and specialty medicines.
- The company aims to achieve more than £40 billion in annual sales by 2031.
Background
GSK has announced a £1.9 billion cost-saving programme to support faster drug development and expand its late-stage clinical pipeline. The British drugmaker said the move will help fund more advanced studies as it prepares for the expected loss of patent protection on its blockbuster HIV drug, dolutegravir, between 2028 and 2030.
The company now expects to begin 25 late-stage clinical studies by the end of 2026, more than double its earlier target of 10. After reviewing its research portfolio, GSK identified seven experimental medicines for faster development across 18 disease areas, including three cancer drugs.
Investors welcomed the announcement, sending GSK shares up as much as 7% before they closed 4% higher. The company also improved its medium-term operating margin outlook to “stable to improving” and reported second-quarter results above market expectations. Revenues stood at £8.41 billion, while core earnings stood at 50.5 pence per share.
GSK reiterated its expectations of revenue growth during the year at 3% to 5%, but cut the guidance on core earnings to the lower half of the previous estimate in view of expenses relating to the $10.6 billion deal for Nuvalent.
The company expects to spend £2.4 billion to implement the restructuring. Savings will come from AI-driven technology, simpler support functions, supply chain improvements and resource reallocation. Part of the investment will also support the relocation of GSK’s research and development operations from Stevenage to Cambridge.
Despite taking a £1.33 billion impairment charge after ending development of its chronic cough drug camlipixant, GSK reaffirmed its goal of generating more than £40 billion in annual sales by 2031.
