GSK to invest £400 million in Britain over three years as it ramps up R&D efforts

LONDON, July 28 (Reuters) - British drugmaker GSK said on Tuesday it will invest £400 million ($531 million) over three years in the country, including moving its R&D operations to Cambridge, as part of its plans to develop medicines faster under new CEO Luke Miels. 

GSK's investment comes a few months after the U.S. and Britain finalised an agreement aimed at increasing UK medicine prices in line with President Donald Trump's new U.S. pricing policies.

"This investment by GSK is a vote of confidence in British business. A boost for home grown innovation and expertise," British Prime Minister Andy Burnham said in a statement.

GSK's decision builds on more than £3 billion in life sciences investment secured in the past 12 months under the government's Life Sciences Sector Plan, which aims to establish Britain among the top three life sciences economies by 2035.

Rival AstraZeneca announced a £300 million investment in Britain earlier this year, reversing its decision to pause large-scale projects. 

GSK said the new 300,000-square-foot site in Cambridge, eastern England, one of Britain's leading life sciences hubs, will support research in its therapeutic focus areas including cancer and respiratory diseases. 

"This investment will accelerate our R&D and help us deliver new, competitive products," Miels said. 

As part of the investment, GSK said it will vacate its R&D site in Stevenage, southern England, by 2029 and also upgrade its nearby facility in Ware, relocating some staff there. 

The Cambridge centre will accommodate more than 1,000 scientists, while GSK's global headquarters will remain in London. 

GSK invests over £6 billion in R&D annually, with more than £1.5 billion spent in Britain.

($1 = 0.7531 pounds)

(Reporting by Bhanvi Satija. Editing by Louise Heavens and Mark Potter)