GSK, the British pharmaceutical company, has announced plans to relocate its research and development (R&D) centre from Stevenage, Hertfordshire, to a new £400 million facility in Cambridge, aiming to accelerate drug development and strengthen its position within the UK life sciences sector. The move to a 300,000 square foot site on the Cambridge Biomedical Campus is scheduled for completion by 2029 and will house over 1,000 scientists focusing on areas including oncology, respiratory diseases, hepatology, vaccines, and HIV.
The decision, unveiled by CEO Luke Miels during his first major strategic update since taking charge in January, forms part of GSK's broader “Accelerate Growth” programme. This strategy targets increasing the company’s group revenues to over £40 billion by 2031 while managing challenges such as the impending loss of patent protection on its blockbuster HIV drug dolutegravir between 2028 and 2030. To support the investment in R&D and late-stage clinical trials, GSK plans to implement a major restructuring programme aimed at delivering £1.9 billion in annual cost savings by 2029, funded by a one-off charge of £2.4 billion.
As part of this restructuring, GSK confirmed it would close the 30-year-old Stevenage R&D centre, where approximately 1,800 staff are currently employed. Many of these positions are expected to move to the new Cambridge campus or to an upgraded facility in Ware, Hertfordshire. However, the company declined to specify how many net job losses might occur, although cuts are anticipated predominantly in support roles, procurement, and operations related to legacy drugs no longer under patent protection.
GSK’s increased investment in late-stage drug development includes plans to double the number of phase III clinical trials from 10 to over 20 by the end of the year, reflecting confidence in its pipeline and recent acquisitions, notably the $10.6 billion purchase of US biotech firm Nuvalent, which specializes in cancer therapies.
The relocation to Cambridge, home to over 22,000 professionals and approximately 470 biotechnology and artificial intelligence companies, will position GSK alongside rival AstraZeneca, which transitioned its main UK research centre to the campus following a £1.1 billion investment. Miels highlighted that proximity to a vibrant life sciences cluster would foster collaboration and innovation, referencing his prior experience working at AstraZeneca.
The initiative has received endorsement from government officials, including Prime Minister Andy Burnham, who described the investment as "a vote of confidence in British business." It also signals a broader willingness by UK pharmaceutical firms to invest domestically following earlier tensions regarding drug pricing and NHS reimbursement policies.
While GSK reported a 5% increase in sales to £16 billion for the first half of 2026, its profits fell 31% to £2.8 billion due in part to halting development of a chronic cough treatment after disappointing trial results. The company also emphasized the role of technology and artificial intelligence in driving efficiency and accelerating drug discovery, though it acknowledged that AI tools would complement rather than replace human expertise.
Investor response to GSK’s strategic updates was positive, with shares rising over 3% following the announcement. Analysts viewed the company’s ambitions as aligning better with market expectations, though some noted that consistent delivery of targets would be critical to maintaining investor confidence.