GSK Announces Major U.S. Investment Amid Tariff Changes and Pipeline Reshuffling

GlaxoSmithKline (GSK) has unveiled plans for a substantial multi-billion-dollar investment in the United States over the next five years, as the pharmaceutical giant navigates new tariffs and refocuses its drug development pipeline. The announcement comes alongside the company's second-quarter earnings report, which showcased strong growth across its specialty medicines and vaccines divisions.

Expansion of U.S. Operations

CEO Emma Walmsley emphasized the strategic importance of the U.S. market during a media call, stating, "The U.S. is our number one priority market. It's in our plans to invest tens of billions [of] dollars in the U.S. over the next five years." While specific details of the investment were not disclosed, Walmsley indicated that GSK aims to ensure its U.S. portfolio is increasingly supplied domestically.

The move comes in response to recent trade developments between the U.S. and the European Union, which have resulted in a 15% tariff on pharmaceutical imports. Industry analysts project these levies could cost the sector up to $19 billion.

GSK's commitment to U.S. expansion is already evident, with the company currently operating five factories in the country and having recently broken ground on a new manufacturing facility. This strategy aligns with the broader industry trend of localizing production to mitigate the impact of international trade tensions.

Pipeline Restructuring and Discontinuations

In a significant reshuffling of its drug development pipeline, GSK announced the discontinuation of several projects across various therapeutic areas:

1. The anti-TIGIT antibody belrestotug, developed in collaboration with iTeos Therapeutics, has been abandoned following disappointing Phase II data in non-small cell lung cancer and head and neck cancer.

2. Ibrexafungerp, an antifungal agent for invasive candidiasis, will no longer be pursued. This decision comes after the FDA lifted a clinical hold on the Phase III MARIO study, which had been implemented due to contamination issues.

3. Several vaccine candidates have been discontinued, including GSK3437949 for malaria, GSK3536852 for shigella, GV118819 for tuberculosis, and the Phase I vaccine GSK3536867 for salmonella.

These pipeline adjustments reflect GSK's strategic focus on high-potential assets and its responsiveness to clinical data and regulatory challenges.

Financial Performance and Growth Outlook

GSK reported robust financial results for the second quarter of 2025, with total revenue reaching £7.986 billion ($10.67 billion), representing a 6% year-on-year increase at constant exchange rates. The company's specialty medicines division was a key driver of growth, surging 15% to £3.327 billion ($4.45 billion).

Standout products included:

• Trelegy Ellipta (asthma): £642 million ($858 million) in global sales
• Benlysta (lupus): £372 million ($497 million)
• Shingrix (shingles vaccine): £241 million ($322 million)

Encouraged by these results, GSK has raised its full-year turnover outlook, now expecting growth toward the upper end of its previous 3% to 5% guidance range.

As GSK continues to navigate the complex landscape of international trade, regulatory requirements, and clinical development, its strategic investments and pipeline decisions underscore the company's commitment to maintaining its position as a leader in the global pharmaceutical industry.