GSK prepares for patent cliff with $2.5B cost-cutting plan

An article from GSK prepares for patent cliff with $2.5B cost-cutting plan The pharma hasn’t yet revealed what kind of job cuts might be involved in the plan, which will help it absorb the coming loss of patents important to its HIV drug franchise. Published July 28, 2026 Delilah Alvarado Reporter Share Copy link Email LinkedIn X/Twitter Facebook Print License Add us on Google GSK is turning to a multibillion-dollar cost-cutting program to help the company grow profits while absorbing the impact of a sizable patent cliff. In its latest quarterly earnings report on Tuesday, the British pharmaceutical company revealed a three-year restructuring plan designed to save a total of about £1.9 billion, or $2.5 billion, per year. GSK didn’t disclose specific details about the plan, but said that it should “simplify the organization” and help “reallocate capital and resources” towards specialty medicines. In an email to BioPharma Dive, a GSK spokesperson confirmed that job cuts will be involved, but also noted that the company will create new roles in "priority" research projects. GSK hasn't disclosed the specific number of positions that will be impacted, as it intends to communicate the details to employees first, the spokesperson said. The savings will come from shifts towards AI technology, as well as the “streamlining” of supply chains and support services, GSK added in its earnings report. The company will also vacate a research and development site in Stevenage and establish a new global center in Cambridge, U.K. Luke Miels, who took over as GSK’s CEO from Emma Walmsley at the start of this year, is targeting £40 billion in annual sales for by 2031. GSK hopes to get there despite the coming loss of patents between 2028 and 2030 for dolutegravir, a component of multiple HIV regimens that, last year, generated more than $5 billion in sales. The company is leaning on a string of upcoming launches for drugs for cancer, hepatitis B and more to pick up the slack. But it’s also become more aggressive in dealmaking of late, particularly in oncology. Over the last year or so, GSK has spent nearly $11 billion on cancer drugmaker Nuvalent and another $2.2 billion on immune drug developer Rapt Therapeutics. It also snapped up 35Pharma for a blood pressure drug and paid Boston Pharmaceuticals $1.2 billion upfront for a liver disease treatment in advanced testing. Those deals, as well as other business development moves, have helped GSK get to the point where it now has 62 drugs in clinical development, 19 of which are in late-stage testing. GSK plans to initiate over 20 Phase 3 trials this year. And the Nuvalent deal has already paid off with a drug approval in lung cancer. The cost-cutting plan is designed to boost the company’s margins while it makes progress elsewhere. And the magnitude of the initiative took some Wall Street analysts by surprise. In a Tuesday note to clients, Jefferies analyst Michael Leuchten called the restructuring a “strong and unexpected move” that was “about double what we expected.” GSK shares climbed about 4% in midday trading Tuesday. Add us on Google Share Copy link Email LinkedIn X/Twitter Facebook Print License Filed Under: Pharma