GSK Launches Cost-Saving Plan to Accelerate Drug Pipeline

By Adria Calatayud

GSK said it is launching a three-year program to cut costs and reinvest in its drug pipeline, seeking to protect profitability during the patent expiration of a key HIV drug.

The U.K. drugmaker said Tuesday that it is targeting annual savings of 1.9 billion pounds ($2.52 billion) by 2029, as Chief Executive Luke Miels outlined his roadmap to get the company to hit its 2031 sales target.

Savings will be primarily reinvested in research and development, but some will be used to improve profitability during the patent expiry period of GSK's dolutegravir HIV drug from 2028 to 2030, it said. The program will come at a cost of 2.4 billion pounds, the company added.

Shares in GSK jumped 3.3% on the news.

GSK also said it plans to open a new R&D center in Cambridge, England, as part of a 400 million-pound investment in its U.K. footprint.

For the second quarter, GSK reported turnover of 8.41 billion pounds, up 5% at constant currency, and core operating profit of 2.8 billion pounds, up 7% excluding currency movements.

Analysts had forecast turnover at 8.24 billion pounds and core operating profit at 2.675 billion pounds, according to consensus estimates provided by the company.

Write to Adria Calatayud at adria.calatayud@wsj.com

(END) Dow Jones Newswires

July 28, 2026 07:52 ET (11:52 GMT)