Key facts
- GSK plans to cut back-office headcount to fund a new £400 million R&D campus in Cambridge.
- The new campus will be home to over 1,000 GSK scientists and is expected to be operational by 2029.
- The investment aims to accelerate research and development and bolster the company's drug pipeline.
- GSK will double its phase-three trials from 10 to 20 this year.
- Job losses are expected from areas such as human resources and general medicine arms.
GSK is planning to reduce its back-office workforce to fund a significant investment in a new £400 million research and development campus in Cambridge. This strategic move, unveiled by CEO Luke Miels, aims to enhance the company's drug pipeline and address the anticipated patent cliff for its HIV franchise, which is set to expire from 2028.
The new 300,000 square foot site will become the primary hub for GSK's research and development, accommodating over 1,000 scientists. The company is scheduled to vacate its current Stevenage R&D facility by 2029. Miels stated that this investment will accelerate R&D and help deliver competitive products, integrating GSK into a leading global knowledge center and highlighting the UK's life sciences ecosystem.
This investment signifies an improvement in relations between UK ministers and the pharmaceutical industry, following a period of tension over drug pricing. A previous dispute had led major pharmaceutical companies to halt expansion plans. However, a subsequent deal for additional taxpayer funding on drug prices prompted AstraZeneca to revive its UK investment plans and eased pressure from President Donald Trump regarding potential tariffs on UK pharma exports.
This initiative marks the first major strategic announcement from Miels, who succeeded Emma Walmsley. GSK has faced challenges keeping pace with competitors, and shareholders are concerned about the impending loss of patent protection for a key drug. To support these parallel investment programs, GSK plans to implement redundancies in less profitable segments, with job losses anticipated in areas like human resources and a shift of staff from general medicine to faster-growing business areas. The company also intends to double its phase-three trials this year, from 10 to 20, to bolster its pipeline.