GSK Plans Push to Cut Costs, Accelerate Its Drug Pipeline

By the Editorial Team · Wednesday, July 29, 2026

GSK has launched a three-year plan to cut costs by £1.9 billion annually by 2029 and accelerate drug development, including building a new R&D center in Cambridge and increasing clinical trials, to offset revenue losses from the upcoming patent expiry of its HIV drug dolutegravir. This initiative supports CEO Luke Miels’s goal of surpassing £40 billion in sales by 2031 amid increased R&D investment and recent acquisitions, although some analysts remain cautious about meeting these targets.

British pharmaceutical company GSK announced a three-year initiative aimed at reducing costs and accelerating its drug development pipeline to sustain profitability amid the anticipated patent expiration of its leading HIV medication, dolutegravir, later this decade. The program, launched Tuesday, includes plans to save £1.9 billion ($2.52 billion) annually by 2029, following an investment of £2.4 billion over the period.

Central to the company’s strategy is the establishment of a new research-and-development (R&D) center in Cambridge, England, situated within the biomedical campus of the university town where rival AstraZeneca is headquartered. GSK also plans to ramp up clinical trials for promising late-stage drugs, with the number of trials expected to exceed 20 in 2026, up from 10 previously. These efforts form part of CEO Luke Miels’s broader goal of driving GSK’s sales beyond £40 billion by 2031 and fostering continued growth thereafter.

As part of the reorganization, GSK will close its R&D facility in Stevenage, England, while upgrading its existing laboratories in Ware, with a projected investment of £400 million over three years. The company intends to allocate the majority of cost savings toward research and development activities, while a smaller portion will support operating margins during the expected decline in revenue linked to dolutegravir’s patent expiry between 2028 and 2030.

Since assuming the CEO role in January, Miels has intensified dealmaking activities, including the recent $10.6 billion acquisition of cancer drug developer Nuvalent, GSK’s largest purchase in several years. Despite these initiatives, some analysts remain cautious about the company’s ability to meet its ambitious 2031 targets given the looming patent challenges.

In a conference call, Miels highlighted a portfolio review identifying seven late-stage drugs addressing 18 indications with high development potential. This portfolio refinement underscores GSK’s focus on emerging growth drivers.

Financial results for the second quarter showed revenue of £8.41 billion, representing a 5% increase on a constant currency basis and surpassing analyst expectations of £8.24 billion. Core operating profit rose 7% to £2.8 billion, also exceeding forecasted values. However, net profit declined sharply to £435 million from £1.44 billion a year earlier, primarily due to increased R&D expenditures.

GSK maintained its full-year guidance while refining expectations to anticipate turnover and core operating profit growth in the upper half of previous ranges, with core earnings per share projected toward the lower half.

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