GSK Launches $2.5 Billion Cost-Savings Program to Fund Drug Development
GlaxoSmithKline (GSK) has announced a £1.9 billion ($2.52 billion) cost-savings initiative aimed at funding late-stage drug research and development. The program, part of CEO Luke Miels' strategy for faster innovation, is intended to bolster investor confidence amid upcoming patent expirations that could impact the company's revenue goals. GSK has also increased its acquisition activity recently, including a record purchase of Nuvalent in June. The cost-cutting plan will span three years and focus on streamlining operations while reallocating capital toward R&D efforts. The announcement came alongside better-than-expected second-quarter profits and an additional £400 million investment in the UK, which includes funding for a new research center.
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