July 28 (Reuters) – GSK on Tuesday launched a £1.9 billion ($2.52 billion) cost-savings program to help fund the British drugmaker’s late-stage studies, aiming to deliver on CEO Luke Miels’ promise of faster drug development and boost investor trust.
Under Miels, GSK has stepped up acquisitions, including a record one for Nuvalent in June, as it rebuilds its cancer business and eyes faster development of its own drugs ahead of critical patent losses, which could weigh on its target of achieving more than £40 billion in annual revenue by 2031.
Shares in the company were up 4.2% by 1120 GMT after it also beat second-quarter profit expectations and said it would invest £400 million in the UK, including on a new R&D centre.
“To fund investment in the late-stage portfolio and R&D, we are starting a 3-year cost-savings programme to simplify the organisation and to reallocate capital and resources,” Miels said in a statement.
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(Reporting by Raechel Thankam Job and Sri Hari N S in Bengaluru, and Bhanvi Satija in London; Editing by Sherry Jacob-Phillips and Vijay Kishore)
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