GSK has announced a plan to achieve £1.9 billion (approximately $2.5 billion) in annual cost savings by 2029. The company stated that these funds will be used to support investment in its late-stage portfolio and research and development.
According to the company, about 45% of the savings will come from cutting support services, procurement, and simplifying processes. The remaining 40% will result from moving resources away from established treatments to focus on new drugs.
Cambridge expansion and Stevenage closure
As part of this restructuring, GSK plans to invest £400 million in UK life sciences over three years. This includes the development of a new R&D centre in Cambridge. The 300,000 sq ft (28,000 sq m) site is being developed by Prologis on one of the largest biomedical campuses in Europe.
More than 1,000 scientists will move to the new Cambridge site. The facility will focus on oncology, respiratory, hepatology, vaccines, and HIV. The campus currently hosts over 22,000 people, more than 470 biopharma, biotech and AI companies, and sees over 1 million patients annually.
Conversely, GSK will close its R&D site in Stevenage by 2029. This decision comes five years after the company announced a £400 million expansion of that campus. The company will also upgrade its R&D laboratories at Ware and move some employees there.
Leadership and market context
Luke Miels, who took over as CEO from Emma Walmsley at the start of the year, leads the company through this transition. Miels previously served as GSK's chief commercial officer. He stated that the company is step-by-step building a set of potential best-in-class products across its core therapy areas, which include oncology, liver disease, vaccines, and HIV.
The announcement follows a period of increased acquisition activity under Miels. GSK aims to start at least 20 Phase 3 trials this year, double the number previously announced.
GSK declined to disclose the number of job cuts globally.
The move occurs amidst broader shifts in the UK life sciences sector. AstraZeneca recently announced a £300 million investment in the UK, including a £200 million expansion in Cambridge.