U.K. pharmaceutical company GSK reveals a 30 billion dollar investment in the U.S.
In a significant move for the pharmaceutical sector, London-based GlaxoSmithKline (GSK) has announced a $30 billion investment over the next five years in the United States. This marks the first announced investment for the U.S. by GSK.
The investment will be allocated to research and development, as well as production capabilities. GSK aims to develop 'next-generation biopharmaceutical factories and labs' in the U.S., with a focus on creating new medicines for respiratory diseases and cancer.
One of the key facilities will be a factory in Pennsylvania, set to begin construction from 2026, which will further strengthen GSK's presence in the United States. This investment is in response to pressure from U.S. President Donald Trump for pharmaceutical companies to invest and produce in his country.
The investment will also be used for advanced production facilities, as well as AI and digital technologies. This trend of pharmaceutical companies investing in the U.S. has fuelled concerns about a loss of attractiveness of the UK in the sector.
Notably, GSK is one of 17 companies asked by Trump to present 'firm commitments' to lower the price of their products in the U.S. by September 29. Other pharmaceutical companies have been investing and relocating production to the U.S., totalling tens of billions of dollars in recent months.
Meanwhile, GSK's British rival, AstraZeneca, has announced a $50 billion investment in the U.S. for medicine manufacturing and research and development by 2030. However, AstraZeneca has suspended a new £200 million investment project in the UK.
Microsoft has already invested $30 billion in London, and Google has invested $5 billion (£9.39 billion Canadian dollars) in the city. Yet, the search results do not provide information on which specific US states GSK will invest the announced $1.2 billion for advanced production facilities, AI, and digital technologies.
Trump's state visit to the UK has resulted in several announcements of partnerships and investments between companies from both countries. The investment by GSK is expected to create thousands of jobs in the U.S. and contribute significantly to the pharmaceutical sector in the country.
GSK hopes that by investing in the U.S., they can avoid sector-specific tariffs that could otherwise be imposed on them. The company's investment comes at a time when it is facing increased competition and pressure to reduce costs, making the U.S. market an attractive destination for growth.
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