Pharmaceutical company GSK plans a $30 billion investment in the US, potentially dealings a significant blow to the UK's pharmaceutical industry.
The pharmaceutical industry and tech sector are making significant investments in both the UK and the US, with the potential to change lives on both sides of the Atlantic and accelerate the development of cutting-edge technologies.
AstraZeneca has pledged a $50bn investment into the US, while GSK has announced a plan to invest $30bn over the next five years in research and manufacturing facilities in the US. This investment is expected to create hundreds of high-skilled American jobs in areas like AI and advanced digital technologies.
GSK's CEO, Emma Walmsley, stated that the investment does not signal a lack of confidence in the UK. Instead, she mentioned that the investment "brings together two countries that have led the world in science and healthcare innovation." Prime Minister Keir Starmer defended the GSK investment as a "powerful example of how UK-US collaboration is driving real-world impact."
However, GSK is not the only pharmaceutical company that has either reduced capital spending in the UK or increased it in the US. Pfizer and AstraZeneca have also decided in recent years to reduce capital expenditures in the UK or increase them in the USA.
The investment by these companies is not without criticism. Laura Citron, CEO of London & Partners, expressed concern over Merck's decision to leave its planned new HQ in King's Cross. Citron also mentioned that frequent conversations with international pharma about setting up in London involve critiques about the UK's weaknesses in drug pricing and investment in R&D.
Citron's sentiments were echoed by Merck, as they scrapped a planned £1bn research center in King's Cross. However, it's worth noting that GSK has increased its spending in the UK by approximately 50% from £1bn a year just a few years ago.
The investment by GSK, Google, Blackrock, and Astrazeneca coincides with US President Donald Trump's state visit to the UK. Blackrock has committed £500m in Britain, while Google has made a £5bn investment pledge to build more data centers in Britain.
Walmsley expressed pride in GSK being part of both the UK and the US. She emphasised that the investment would enable the company to "continue to deliver life-changing medicines and vaccines to patients around the world."
This wave of investment is expected to further strengthen the already strong ties between the UK and the US, particularly in the areas of science, technology, and healthcare.
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