- GSK to invest $30 billion in the US
- $2 billion will be spent during the next 12-months
- Hundreds of jobs to be created Stateside
Pharmaceutical firm GSK (GSK) said it plans to invest more than $30 billion in research and development and manufacturing facilities in the US over the next five years, mirroring AstraZeneca’s (AZN) announcement in July to invest $50 billion stateside by 2030.
CEO Emma Walmsley commented: ‘Alongside the many longstanding and vital shared interests that connect the UK and the US, is advancing life sciences to get ahead of disease.
‘Today, we are committing to invest at least $30 billion in the US over the next five years, further bolstering the already strong R&D and supply chain we have in the country.’
$1.2 billion of today's announcement includes construction of an additional next-gen biologics ‘flex’ factory. These are research centres powered by AI, other advanced technologies and expert talent to produce transformational new respiratory and cancer medicines for patients.
GSK reset its supply chain for regional resilience and dual pricing following the demerger of consumer health company Haleon (HLN) in 2022. In early dealings GSK shares traded nearly 1% higher to £14.75.
EXPANDING US PRESENCE
Today’s (17 Sep) announcement commits GSK to spending approximately $2 billion over the next 12-months and adds to the company’s manufacturing footprint in Pennsylvania, North Carolina, Maryland, and Montana.
In October the company began construction of a new $800 million facility in Pennsylvania to double the capacity of its existing site, which will create hundreds of highly skilled jobs in addition to construction jobs, expanding GSK’s 15,000 workforce in the US.
In 2024 GSK’s global supply chain network delivered 1.7 billion packs of medicines and over 400 million vaccine doses to patients across the planet.
GSK shares made modest gains on the news, trading at £14.76, although investors will likely welcome an intention to investment heavily to remain at the forefront of the vast global lifesciences industry.
UK MISSING OUT
Yet some commentators flagged concerns, including AJ Bell investment director Russ Mould, who offered a more cynical take on the announcement.
‘This week has been full of headlines declaring major US investment in the UK, predominantly around technology. Yet it’s impossible to ignore the loss of potential investment in the UK from domestic and foreign pharmaceutical companies.
‘The UK government might put a spin on GSK’s investment in the US as a sign of strong collaboration between the two countries, yet it’s another example of the UK life science industry missing out.’
Disclaimer: Financial services company AJ Bell referenced in the article owns Shares magazine. The author (Martin Gamble) and editor (Steven Frazer) of the article own shares in AJ Bell.
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