GSK (NYSE:GSK) is ramping up its research and development investment, expanding its late-stage pipeline with 20 Phase III starts in 2023, up from 10 last year. Chief Financial Officer Julie Brown announced during a company discussion that these initiatives aim to offset the impact of HIV patent expirations expected between 2028 and 2030, with a cost-saving program targeting nearly £1.9 billion primarily for reinvestment in pipeline assets.
The company is relocating its U.K.-based R&D operations from Stevenage to Cambridge to leverage the local biotechnology ecosystem, which includes prominent institutions such as the University of Cambridge. GSK’s expanded focus on long-acting HIV therapies reflects patient preferences, with over 90% favoring injectables over oral treatments. Concurrently, GSK’s acquisition of Nuvalent for more than $10 billion introduced two late-stage oncology assets, with approval for zidesamtinib already received from the FDA.
Additionally, GSK’s shingles vaccine, SHINGRIX, has achieved approximately 45% penetration in the U.S. market, with international expansion potential noted. Brown indicated that the company’s expenses from long-acting injectables remain profitable, despite current gross-margin pressures linked to licensing agreements.
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