Key Highlights
- Dame Emma Walmsley, the CEO of GSK, stated that the US is the best place to invest in the pharma industry.
- GSK plans to invest $30 billion in the US by the end of this decade.
- The decision comes as other major pharmaceutical companies are reducing their investments in the UK due to NHS drug budgets and political pressure.
- Despite recent deals, GSK remains committed to its US investment despite challenges faced by the UK pharma industry.
GSK’s Shift: From UK to US Investment
UK pharmaceutical giant GlaxoSmithKline (GSK) has made a significant shift in its strategic focus, with CEO Dame Emma Walmsley declaring that the United States is currently the best country for investment in the pharma industry. This statement comes at a time when other major drug manufacturers are reconsidering their investments in the UK due to various challenges.
Investment in the US
GSK has announced plans to invest $30 billion (£23 billion) in the United States by the end of this decade. This financial commitment underscores GSK’s confidence in the US market, which is responsible for more than half of its global turnover. According to Dame Emma Walmsley, the US remains “the leading market in the world in terms of the launches of new drugs and vaccines,” making it an attractive destination for significant investments.
Challenges Facing UK Pharma
The decision by GSK to prioritize investment in the US contrasts with ongoing challenges faced by the UK pharmaceutical industry. Over recent years, major drug makers have pulled back from projects in the UK due to issues such as NHS drug budgets and political pressures, particularly under former President Donald Trump’s administration. However, Dame Emma Walmsley is not deterred by these trends. She emphasizes that despite the difficulties, GSK remains committed to its US investments.
UK’s Role: Exporter of Innovation
While acknowledging the importance of the UK market as an exporter of innovation in life sciences, Dame Emma Walmsley stresses that it is not a massive scale market. She points out that 2% of GSK’s sales come from the UK, with more than half coming from the US. Despite this, GSK is heavily invested in both manufacturing and research and development within the country.
NHS Tariff Deal
Despite challenges, Dame Emma Walmsley welcomes a recent deal that will scrap tariffs on UK drug shipments to the US, which will see NHS pay more for medicines. This move, she suggests, is a step in the right direction and will encourage innovation supporting ground-breaking new medicines like GSK’s new asthma drug.
Healthcare Disparities
Dame Emma also comments on the disparity within healthcare outcomes across different regions of the UK, highlighting that health prospects can vary by as much as 10 or 15 years based on one’s postcode. She points to factors such as diet and lack of nutrition education as significant contributors to these disparities.
Future Prospects in Health Science
Looking ahead, Dame Emma sees major advances in health science driven by advancements in AI, which could accelerate innovation. She believes that despite challenges, the NHS still has “work to do” on achieving the right balance between price, access, and outcomes.
In conclusion, GSK’s decision to invest heavily in the US while maintaining its presence in the UK reflects a broader trend in the pharmaceutical industry, driven by both market opportunities and regulatory pressures. As major companies reassess their global strategies, the US continues to stand out as a key player in innovation and investment.
