Emma Walmsley took over as GlaxoSmithKline CEO in April. Photograph: AFP\/Getty Images<\/p>\n
GlaxoSmithKlines new chief executive Emma Walmsley has laid out plans to cut one in three of the pharma groups drug development programmes as part of a shakeup of the business. She also plans to offload 130 non-core brands and possibly sell off the unit that works on treatments for rare diseases. <\/p>\n
Walmsley, the former head of the drugmakers consumer healthcare business, who took over from Sir Andrew Witty as CEO in April, said the company would focus more on backing the real winners medicines that generate substantial returns. <\/p>\n
Some 33 programmes were to be cancelled, sold or partnered. They included 13 in clinical development, including treatments for hepatitis C, psoriasis, cancer and rheumatoid arthritis, and about 20 in pre-clinical development. There were currently 94 drug development programmes at Britains biggest pharmaceuticals firm. Its rare diseases unit was also under review. <\/p>\n
Walmsley stressed the research-and-development budget would not be cut and that the money saved would be spent on other areas. To improve the weak late-stage drug pipeline, research would focus on just four areas respiratory, HIV and infectious diseases, cancer and immuno-inflammation conditions such as arthritis and they would get 80% of the research spending. <\/p>\n
We have been much more thinly spread but also our spend per asset has been a bit low, said Walmsley. More and more. we need to make sure we are backing the assets that are winning We should be spending where we believe we have an asset that can be competitive, and reallocating money appropriately. <\/p>\n
Walmsleys efficiency drive will see the number of GSKs suppliers cut by a quarter by 2020, the sale of 130 minor brands such as Horlicks and MaxiNutrition in Britain and an old antibiotics business, and the streamlining of administrative processes. She wants 1bn of annual cost savings by 2020, which will be used to fund the development and launch of new products and offset the impact of pressure on drug pricing. <\/p>\n
GSK already announced last week that it would sell its Horlicks UK brand, shut the Slough factory where the malt drink is made, ditch plans for a new biopharmaceutical factory in Cumbria and outsource some manufacturing from its Worthing site in West Sussex, with the loss of 320 jobs in Britain. <\/p>\n
Walmsley said GSK would make the US its No 1 priority market adding this had nothing to do with Brexit. <\/p>\n
GSKs revenues in the second quarter rose 12% to 7.3bn, boosted by the weak pound (they were up 3% at constant exchange rates). The group made a loss before tax of 178m, down from 318m. <\/p>\n
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Bitter medicine at GSK as Emma Walmsley announces cuts - The Guardian<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Emma Walmsley took over as GlaxoSmithKline CEO in April. Photograph: AFP\/Getty Images GlaxoSmithKlines new chief executive Emma Walmsley has laid out plans to cut one in three of the pharma groups drug development programmes as part of a shakeup of the business Continue reading