GSK unveiled a cost-reduction initiative on Tuesday with a target of £1.9 billion in annual savings by 2029, channeling those resources toward late-stage pipeline expansion while cushioning the business against an approaching patent cliff on one of its leading HIV treatments.
The program will cost £2.4 billion to execute, the company said
The bulk of the savings are earmarked for research and development reinvestment, while a portion will shore up profitability as dolutegravir faces generic competition between 2028 and 2030. The announcement came alongside second-quarter results that exceeded analyst expectations. GSK reported turnover of £8.4 billion for the quarter, up 5% at constant currency, and core operating profit of £2.8 billion, up 7% at constant currency.
Analysts had forecast turnover of £8.24 billion and core operating profit of £2.675 billion, according to Reuters. GSK stock was up 4.2% on the news. Specialty Medicines led the top-line performance, with sales of £3.8 billion, up 14%.