GSK on Tuesday said it will strip out £1.9 billion ($2.5 billion) in annual costs by 2029 and reinvest most of the savings into its late-stage pipeline, with 15% coming from supply chain, 45% from procurement and 40% from portfolio reallocation. Alongside second-quarter results, CEO Luke Miels said the plan is meant to help GSK reach more than £40 billion in sales by 2031 while accelerating development across 18 indications and 25 studies for seven key assets, including in oncology.

Why It Matters To Oncology

• GSK is framing the restructuring as a pipeline acceleration play, not just a margin exercise, with savings earmarked for late-stage R&D that could support oncology programs.

• The company said it identified opportunities to speed development across 18 indications and 25 studies spanning seven key assets in oncology, respiratory, hepatology and vaccines.

• Oncology sales rose 17% year over year to £569 million in the second quarter, suggesting the business is becoming a more meaningful growth contributor.

• Blenrep revenue more than doubled to £36 million after its reintroduction, adding to the oncology growth story.

The Financials

• The cost-efficiency plan targets £1.9 billion in annual savings by 2029.

• Of that total, 45% is expected from procurement, 40% from portfolio evolution and resource reallocation, and 15% from supply chain.

• GSK reported second-quarter sales of £8.4 billion, up 5% at constant currencies and about £160 million above analyst expectations.

• The company reaffirmed full-year guidance and now expects sales growth in the upper half of its 3%-5% range, while core earnings growth is seen in the lower half of the 7%-9% range after the $10.6 billion Nuvalent acquisition.

What They're Saying

• "The key thing is it's reallocation — a small amount goes into the margin, but we're really…reinvesting the savings into the late-stage pipeline so that we can set the company up for success for the next decade," Miels said.

• Miels declined to specify job cuts, saying he wanted his team to speak with employees first.

• Chief Scientific Officer Tony Wood said the new Cambridge R&D center would act as "a catalyst for fast, bolder medicines discovery."

• The Cambridge push also puts GSK alongside AstraZeneca, which recently announced its own UK investment centered in Cambridge.

What's Next

• GSK plans to invest £400 million in the UK over the next three years, including a new flagship R&D center at the Cambridge Biomedical Campus.

• The company will close its main Stevenage R&D hub, transfer staff gradually through 2029 and move some workers to an upgraded Ware site.

• Miels said GSK now expects 20 Phase III study starts this year, double the number outlined at the start of 2026.

• Clinicians and drug hunters will be watching whether the cost reset translates into faster oncology readouts and whether pipeline gains can offset upcoming HIV patent expiries from 2028 to 2030.