GSK Announces Cost-Savings Plan Amid Q2 Earnings Beat
GlaxoSmithKline (GSK) announced a £1.9 billion annual cost-savings initiative by 2029, aimed at reinvesting in late-stage drug development and mitigating the impact of an upcoming patent cliff for its HIV treatment dolutegravir. The program will require a one-time investment of £2.4 billion to implement. The announcement followed Q2 results that beat analyst expectations: GSK reported quarterly turnover of £8.4 billion, up 5%, and core operating profit of £2.8 billion, up 7%. Sales in Specialty Medicines rose by 14% to £3.8 billion, while HIV sales increased by 10% to £2.1 billion. GSK also plans to accelerate its pipeline with over 20 phase III trials expected this year and a new R&D center opening on the Cambridge Biomedical Campus as part of a broader U.K. investment.
Tickers: $GSK
Topics: cost-savings patent cliff pharmaceuticals R&D investment