GSK's $30B US Gamble Sends Pharma Stocks Soaring After Trump Pricing Deal

This article first appeared on GuruFocus.

GSK Plc (NYSE:GSK) is leaning harder into the United States, with outgoing CEO Emma Walmsley calling it the biggest priority market for innovation and growth. Speaking at Bloomberg's Women, Money & Power conference, Walmsley framed the Trump administration's recent pricing agreement with Pfizer as a step forward, suggesting that constructive engagement between drugmakers and Washington could shape the industry's path. She highlighted GSK's own $30 billion commitment to research and advanced manufacturing as part of its push to bet big on the US, where the company already generates more than half of its sales.

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Markets took notice. Shares of GSK rose as much as 2.3% on Wednesday, while AstraZeneca surged 6.2% as investors speculated that other pricing deals may follow. Walmsley stressed that although Astra plans to move its primary listing to New York, GSK will remain in London. She noted that the company's capital allocation priorities, particularly around R&D, are not determined by its listing venue, but by where the growth opportunities lie. With the US now accounting for 52% of GSK's business compared with just 2% in the UK, the direction of travel appears set.

Walmsley's nearly nine-year tenure ends later this year, handing the reins to Chief Commercial Officer Luke Miels. During her leadership, she steered the spin-off of consumer health unit Haleon, increased R&D spend, and struck several major deals, though GSK's shares have lagged Astra's performance. Investors remain focused on whether the pipeline can deliver enough blockbuster therapies to hit the 40 billion revenue target by 2031. Walmsley dismissed talk of a large-scale UK pharma merger, adding that aggressive cost-cutting could undermine research at a time when sustained US investment may prove critical to the next growth cycle.

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