GSK to stop 30 drug developments to focus on core therapies

The British pharma giant also said that it is weighing options for its Rare Diseases business which it is looking to divest in the near future following a strategic review.

According to GSK, its decisions are part of its plans to prioritise and allocate resources in research and development (R&D) for its leading candidates.

GSK will invest 80% of its Pharmaceuticals R&D capital on therapies for respiratory and HIV/infectious diseases, and in oncology and ommuno-inflammation which it calls as potential areas.

The pharma company expects to gather significant data in the next three years from the four priority assets. It will use the data to make investment decisions in their R&D and strategize on how to create the best value out of the assets.

GSK also has plans to proceed with disciplined business development to supplement its early-stage pipeline in the four priority areas.

It has also revealed its intention to scrap its collaboration on rheumatoid arthritis candidate sirukumab with Janssen Biologics and gradually pull out from its diabetes injection Tanzeum business.

Through the newly announced measures, GSK is aiming an additional £1bn in the form of annual cost savings by 2020 which it intends to divert on funding new product launches, investments in R&D among others.

The new plans were unveiled during the release of the company’s half-year report.

GSK CEO Emma Walmsley said: “Q2 was another quarter of progress for GSK with Group sales up 3% to £7.3 billion and Adjusted EPS of 27.2p. 

“Our priority for the second half of the year is to maintain this momentum and prepare for the successful execution of several important near-term launches in Respiratory, Vaccines and HIV.”

Image: GSK House in Brentford, London. Photo: courtesy of GlaxoSmithKline plc.