GSK’s Cost Cuts Reach Belgium, Putting 1,217 Jobs At Risk

GSK (LSE:GSK) filed for up to $3.05B in American Depositary Shares. Shares rose 3.59% to £18.16, with 1-year and 5-year returns at 15.52% and 56.52% respectively. Analysts suggest a 16% undervaluation, targeting £21.73, contingent on pipeline success and cost savings. Risks include pricing pressure and slower product ramp-up.

GSK PLC is expected to report Q3 results in line with estimates, with vaccine sales weakness offset by HIV treatments and Nucala. RBC forecasts Q3 revenue of £8.82B, slightly below consensus, and core EPS of 50.8p, matching expectations. The broker maintained its Sector Perform rating and 1,975p price target. GSK is set to report results on 28 October.

Biotech stocks are rebounding due to record pharmaceutical M&A deals, with 37 acquisitions worth at least $1B each in 2026, totaling $216B. Key deals include Vertex (VRTX) acquiring Crinetics (CRNX) for $10B. Institutional investors are bullish, but retail sentiment is low. The Direxion Biotech Bull 3x Shares (LABU) fund has gained 52.5% YTD, despite its index being down last week.

On July 17, 2026, GSK halted development of camlipixant, a lead drug for refractory chronic cough, despite positive phase 2b results. The decision followed mixed phase 3 trial outcomes, with the drug failing to meet primary endpoints in one trial and key secondary endpoints in both. GSK cited limited efficacy, unlikely to transform patient care. The drug was acquired by Bellus Health in a deal valued at about $2 billion.

GSK plans to invest $800 million in a new biopharmaceutical hub at its Upper Merion facility, starting in 2027. The project will create 300 new jobs, adding to the existing 4,500. GSK's president stated it will accelerate medicine development and supply. Pennsylvania officials highlighted the state's innovation ecosystem and infrastructure.

GSK plans to invest over $800M to expand its facilities in Upper Merion Township, Pennsylvania, creating 300 new jobs and retaining 4,500 existing ones. The expansion will focus on biopharmaceutical innovation and manufacturing, with construction set to begin in 2027. This follows a previous $800M investment in Lancaster County, totaling nearly $1.7B in the state. The company will benefit from tax incentives through the QMIRD and MTC programs.