GSK plans to invest tens of billions of dollars in the United States over the next five years, according to CEO Emma Walmsley, who emphasized the company’s focus on expanding its domestic footprint. Walmsley said the investment would help ensure that the company’s U.S. medicines are increasingly supplied from within the country. She noted that GSK currently operates five manufacturing facilities in the U.S. and had recently broken ground on a new plant. While the company did not specify how much would be spent or the exact allocation of the funds, Walmsley confirmed that the investment strategy is aligned with ongoing discussions with the Trump administration.
The announcement follows a trade agreement between the United States and the European Union, which introduces a 15% tariff on pharmaceutical imports. GSK has taken into account tariffs already enacted by Washington and those expected under the new U.S.-EU deal, as well as possible duties linked to a U.S. investigation into pharmaceutical imports. Analysts have estimated that the cost of these tariffs to the broader industry could reach $19 billion.
In its second-quarter update, GSK reported revenue of £7.986 billion ($10.67 billion), reflecting a 6% increase compared to the same period the previous year, based on constant exchange rates. Growth in the specialty medicines division contributed significantly, with revenue in that segment rising 15% to £3.327 billion ($4.45 billion). The vaccines business also grew, generating £2.091 billion ($2.8 billion) during the quarter.
Key products for the company in Q2 included Trelegy Ellipta for asthma, which recorded £642 million ($858 million) in global sales; the lupus treatment Benlysta, which earned £372 million ($497 million); and the shingles vaccine Shingrix, which brought in £241 million ($322 million).
GSK also announced a series of discontinuations in its development pipeline. The company will no longer pursue the anti-TIGIT antibody belrestotug, previously developed with iTeos Therapeutics. The partnership ended in May following unsatisfactory Phase II results in non-small cell lung cancer and head and neck cancer.
In another move, GSK is ending its work on ibrexafungerp, an antifungal agent developed in collaboration with Scynexis for invasive candidiasis. Although the U.S. Food and Drug Administration lifted a clinical hold on the Phase III MARIO trial in May, GSK decided to terminate the study.
Several vaccine programs were also discontinued. These include mid-stage candidates GSK3437949 for malaria, GSK3536852 for shigella, and GV118819 for tuberculosis. The Phase I vaccine GSK3536867 for salmonella will also not continue.
Despite the changes to its pipeline, GSK raised its full-year revenue forecast and now anticipates growth at the top end of its prior guidance range of 3% to 5%. For 2025, the company expects revenue growth of 3% to 5% and core profit per share growth of 6% to 8% at constant currency. However, reported results are expected to be impacted by currency headwinds, which the company projects will reduce sales by 4% and profits by 7%.
The company stated that it expects five new major approvals in 2025 and aims to achieve annual sales of over £40 billion ($53.44 billion) by 2031. Sales from the U.S., a market valued at approximately $635 billion, currently represent slightly more than half of GSK’s overall revenue.
GlaxoSmithKline (GSK) is moving to make a big strategic play in the United States as it contends with pressure from tariffs, patent expirations, and a thinning product pipeline.
Key Moves
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GSK has announced a $30 billion investment in the U.S. over the next five years. The funds will largely support research & development, strengthening supply chain infrastructure, and manufacturing expansion. Reuters+2Business Standard+2
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As part of that investment, GSK will build a new $1.2 billion facility in Upper Merion, Pennsylvania, focusing on respiratory and cancer medicines. The facility is slated to begin construction in 2026. Reuters+1
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It also plans upgrades across existing U.S. plants, adopting AI and digital technologies, expanding production of drug substances, enhancing device and auto-injector assembly. Reuters+1
Why the Shift: Tariffs, Revenues & Pipeline Headwinds
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With U.S. tariff threats on pharmaceuticals looming, GSK is seeking to mitigate risk by localizing more of its manufacturing and R&D footprint in America. Reuters+2Investing.com+2
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The company is also facing pipeline pressures: sales of older products slowing, vaccines business showing weakness, and patent expirations (especially in its HIV portfolio) that could bite revenues. Investing.com+1
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Despite these challenges, GSK is projecting growth toward the upper end of its guidance for 2025: revenues are expected to grow 3% to 5%, and core earnings per share (EPS) between 6% to 8% under constant currency. gurutrade.com+1
