Trump's visit to the UK received a "gift": GlaxoSmithKline plc Sponsored ADR (GSK.US) promised to invest $30 billion in the US.
British pharmaceutical giant GlaxoSmithKline has pledged to invest $30 billion in the United States over the next five years. The announcement comes as US President Trump arrives in the UK for a high-profile state visit.
British pharmaceutical giant GlaxoSmithKline plc Sponsored ADR (GSK.US) has pledged to invest $30 billion in the United States over the next five years. The declaration was made as US President Trump arrived in the UK for a highly anticipated state visit.
Previously, Trump had threatened to impose tariffs on imported drugs and expressed dissatisfaction with the high cost of medication for American citizens. Against this backdrop, many pharmaceutical companies have issued similar investment statements in the US. It is understood that the US market accounts for approximately 50% of GlaxoSmithKline plc Sponsored ADR's revenue.
GlaxoSmithKline plc Sponsored ADR CEO Emma Walmsley had earlier stated that the company plans to invest billions of dollars in the US over the next five years and considers it a "top priority market." The statement released on Wednesday not only clarifies the specific amount of this commitment, but also partially reveals the direction of some of the funds.
One of the most urgent investments is $1.2 billion, which will be used to build a biopharmaceutical production facility in Pennsylvania, and funds will also be allocated to enhance GlaxoSmithKline plc Sponsored ADR's artificial intelligence (AI) and advanced technology capabilities at various production sites in the US. The remaining $28.8 billion investment will be distributed to capital expenditures, drug research and development, and clinical trials.
Walmsley will participate in Trump's visit to the UK, and this visit is a core measure by the UK government to strengthen UK-US relations.
UK Prime Minister Keir Starmer has expressed support for GlaxoSmithKline plc Sponsored ADR's investment plan, calling it a model of cooperation between the UK and the US. However, at the time of the statement's release, the UK life sciences industry was in turmoil, with criticism from the sector for the lack of support from the UK government for local companies.
For example, Merck & Co., Inc. (MRK.US) has canceled plans to build a 1 billion (approximately $1.4 billion) research center in London; Astrazeneca PLC Sponsored ADR (AZN.US) has also halted its 200 million expansion project at its UK headquarters.
Pharmaceutical companies are increasingly dissatisfied with the UK government's "inaction" in industry investments. Last month, negotiations on the UK drug pricing rebate policy reached an impasse, further deepening the tension between the industry and the government.
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