25.1 C
Delhi
Tuesday, September 23, 2025

GSK Commits $30bn US Investment as UK Pharma Sector Struggles

Date:

GlaxoSmithKline (GSK) has announced plans to invest $30bn (£22bn) in research and manufacturing across the United States over the next five years, marking one of its largest commitments to the market.

The pledge, unveiled during US President Donald Trump’s visit to the UK, will fund next-generation factories, AI-driven tools, and advanced research labs. British Prime Minister Sir Keir Starmer hailed the move as a “powerful example” of US-UK collaboration, highlighting its potential to create jobs and accelerate drug development.

The decision follows growing pressure from the Trump administration for drugmakers to shift production to the US. GSK confirmed that $1.2bn will go toward building a new facility in Pennsylvania, focused on treatments for respiratory diseases and cancer, with construction beginning next year. Additional funds will modernize GSK’s five existing US sites, including those in North Carolina and Maryland, through expanded AI and digital technologies.

The remainder of the investment will strengthen the company’s supply chain and drug research programmes.

Despite the pivot to the US, CEO Emma Walmsley said GSK will continue investing in its UK operations, maintaining more than £1.5bn annually in domestic R&D.

However, the move underscores wider challenges facing the UK pharmaceutical industry. This year alone, drugmakers have halted or cancelled nearly £2bn in planned UK investments, citing uncertainty and potential US tariffs of up to 250% on pharmaceutical imports.

Rivals have already scaled back: Merck (MSD) recently scrapped plans for a £1bn London research centre, while AstraZeneca shelved a £200m expansion of its Cambridge facilities.