GSK Shares Edge Lower: Pharma Firm to Lower U.S. Drug Prices

GSK (LON: GSK) shares have edged lower on Monday after the pharmaceutical group said on Friday that it had reached an agreement with the U.S. government to reduce the cost of certain prescription medicines and expand access to respiratory treatments.

The stock is currently down 0.7% at 1,808.5p in morning trading, having risen more than 34% this year and about 20% over the past month.

The company said the voluntary agreement delivers on four actions requested by U.S. President Donald Trump and focuses on lowering prices for medicines used to treat asthma and chronic obstructive pulmonary disease. More than 40 million people in the U.S. suffer from respiratory conditions, according to GSK.

Under the deal, the company will lower the price of certain medicines in Medicaid and introduce new products with a more balanced pricing approach across developed markets.

The group will also make most of its inhaled respiratory portfolio available through a direct purchasing platform, offering savings of up to 66%.

The agreement includes measures to support U.S. supply chain resilience. As part of the Strategic Active Pharmaceutical Ingredients Reserve, GSK will secure a reserve of albuterol, also known as salbutamol, which is widely used in inhalers.

The arrangements cover both GSK and ViiV Healthcare. The companies said the agreement provides clarity on future U.S. pricing and excludes them from Section 232 tariffs for three years, although detailed terms remain confidential.

Chief executive Emma Walmsley stated that the announcement “builds on GSK’s strong track record of increasing access and improving the affordability of its medicines worldwide”.

GSK also highlighted its plans, announced in September, to invest more than $30bn in U.S. research, development and manufacturing over the next five years, expanding its existing U.S. footprint.