GSK Launches £1.9 Billion Cost-Savings Plan to Fund R&D

GSK plc launched a three-year, £1.9 billion cost-savings program on July 28, 2026, to fund the expansion of late-stage drug studies and offset the financial impact of the upcoming patent expiry for the HIV treatment dolutegravir. The company plans to double its 2026 target for late-stage studies from 10 to over 20. To achieve these savings, GSK will implement AI-led technology shifts and streamline supply chains and support services, though it expects to incur £2.4 billion in implementation costs.

As part of this strategic shift, the company is investing £400 million to establish a new 300,000-square-foot flagship research and development center at the Cambridge Biomedical Campus by 2029. This facility will house more than 1,000 scientists focusing on vaccines, HIV, hepatology, respiratory, and oncology research. Consequently, GSK will vacate its main R&D hub in Stevenage by 2029. The company intends to relocate the approximately 1,800 staff from Stevenage to the new Cambridge site or to upgraded laboratories in Ware.

CEO Luke Miels stated that 45% of savings will come from procurement and support functions, 40% from portfolio changes, and 15% from supply chain improvements. The announcement coincided with second-quarter results that exceeded expectations, with core profit reaching 50.5 pence per share on revenue of £8.41 billion.