Pharmaceutical giant GSK is establishing a new £400m research and development centre in Cambridge. The move will see the closure of the company's historic Stevenage facility, with most scientists expected to relocate to the new Cambridge site.
Andy Burnham described GSK's investment as "A vote of confidence in British business." Cambridge is noted as a world-class hub for life sciences, attracting companies to gather in clusters due to its university, Addenbrooke's hospital, science institutes, and a strong biotech and biopharma start-up scene.
The company's chief executive, Luke Miels, also announced plans to cut £1.9bn in annual costs by 2029. This initiative is expected to involve efficiencies across procurement, sales forces, AI, and manufacturing as the company shifts towards specialist drugs.
GSK anticipates putting at least 20 potential medicines into late-stage trials this year, an increase from 10 previously. This boost partly follows the acquisition of US-based cancer specialist Nuvalent last month. Furthermore, GSK predicts operating profit margins will be "stable to improving" even as patents on its HIV medicine dolutegravir expire between 2028 and 2030.