Andrew Witty

GSK chief elaborates on biotech strategy

John Carroll — Thu, 24 Jul 2008 11:13:43 -0400

With profits sliding, GlaxoSmithKline CEO Andrew Witty used much of his second quarter review for analysts to amplify plans to radically alter its R&D work, abandoning its old focus on blockbusters in favor of more targeted drugs that earn more modest incomes. Glaxo is shifting more to a biotech approach, creating small units of up to 80 scientists to pursue development programs. Those groups will then apply for research funds from a central investment board.

According to a report in The Times, Witty plans to also set up a venture arm to invest in promising new therapies pursued by early-stage companies or set up small companies to focus on Glaxo drugs. In addition, the pharma giant plans to coordinate their research with UK regulatory officials to help determine if the drugs they have in development are cost efficient and unique. And Glaxo is delaying a share buyback plan to make sure that the company has the funds it needs to make new acquisitions.

- read the report from The Times
- read the story in the Wall Street Journal

ALSO: GlaxoSmithKline and the Harvard Stem Cell Institute have inked a five-year, $25 million-plus collaborative agreement to build a "unique alliance in stem cell science, leading to the development of new medicines." Release

GSK looks to gov. agencies for R&D advice

John Carroll — Mon, 07 Jul 2008 10:08:29 -0400

GlaxoSmithKline's newly appointed CEO Andrew Witty has seen the future of drug development, and government healthcare systems will play an even bigger role in it. In an interview with the Wall Street Journal, Witty says that the pharma giant will give government agencies around the world--which pay the lion's share of the drug tab--a bigger voice in deciding which new therapies are advanced in the pipeline. As biopharma giants struggle to win approval for a new generation of therapies at enormous cost, they're showing a rising desire to get regulators' input on their development programs at an earlier stage. Novartis, for example, altered a late-stage trial of an experimental medication to give British regulators more data on cost efficiency. And Glaxo shows every sign of following the same essential path.

"I'm going to deal with the pharmaceutical realities of the next 10 years, and they're very different from those of the 1990s," Witty told the WSJ.

- check out the Wall Street Journal article

Ailing GlaxSmithKline to axe 350 R&D workers

John Carroll — Wed, 11 Jun 2008 11:11:45 -0400

In an effort to shake up an organization that has produced few major advances recently, GlaxoSmithKline announced plans to axe 350 jobs in its R&D operations. The cuts--part of a major restructuring announced last fall--will terminate staffers at three labs in the U.S., Italy and Germany. The cuts inside GSK reflect the new CEO's strategic move to look outside the company for innovations in drug technology. That's a move that has benefited biotech companies with a lineup of new, big-dollar collaboration deals.

"These changes are part of GSK's longer-term strategy to ensure that we invest in key areas of future growth and evolve our business to compete effectively in what is a rapidly changing and challenging environment for pharmaceutical companies," a spokesperson told the Wall Street Journal.

You can expect more changes ahead. Glaxo signaled that it's restructuring its research activities into smaller teams and changing its incentives to reward innovation or punish failure. One of those punishments evidently includes a pink slip.

- read the article in the Wall Street Journal

GlaxoSmithKline CEO Andrew Witty

Maureen Martino — Mon, 08 Oct 2007 11:10:11 -0400

GlaxoSmithKline appointed Andrew Witty to succeed Jean-Pierre Garnier as CEO. He took over in may. Witty has spent his entire career at Glaxo, with stints in South Africa, the U.S., and Asia. He was previously president of the company's European pharma division.

SPOTLIGHT: GSK names Witty as new CEO

Mon, 08 Oct 2007 06:59:53 -0400

After a very long, very public selection process, GlaxoSmithKline has appointed Andrew Witty (photo), now president of the company's European pharma division, to succeed Jean-Pierre Garnier as CEO in May. Analysts said he'd been able to grow sales significantly in Europe despite pricing pressures--an ability that may help him in the U.S. as well. Report

At GSK, a public race for the top spot

Maureen Martino — Mon, 24 Sep 2007 09:49:54 -0400

GlaxoSmithKline is holding a very public race to choose the company’s next CEO. GSK’s current chief, Jean-Pierre Garnier, announced in September 2005 that he was retiring and that the company would be considering internal candidates for the job. The three men being evaluated for the top spot are David Stout, president of global pharmaceutical operations; Chris Viehbacher, president of U.S. pharmaceuticals; and Andrew Witty, president of European pharmaceuticals. GSK has hired an outside consulting service to evaluate each candidate; the service is not recommending a particular candidate, but rather providing the board of directors with reports on the candidates. As part of the evaluation process, each executive was given specific projects related to issues facing the industry. They were also reviewed by their subordinates and bosses as well as by each other. The three candidates have spoken at conferences, met with directors, and given presentations about their business to the board.

While the two-year evaluation process is designed to help the board choose the most qualified executive for the job, some observers say this kind of public competition isn’t good for the company or the candidates. “You've put the four people most involved in running the business, including [Jean-Pierre Garnier], in the position where, as well as running the business, they're thinking of what's going to happen when J.P. retires,” Paul Diggle, a pharmaceutical analyst with Nomura Code Securities in London, told The Wall Street Journal. Another analyst notes that the two executives who are passed over for the job may jump ship, as Karen Katen did when Jeffrey Kindler was named CEO of Pfizer.

The board could take a final vote on GSK’s new CEO as early as next month. Garnier plans to step down in May of 2008.

- read the Wall Street Journal article for more (sub. req.)

Related Articles:
GSK chief shrugs off growing criticism. Report
Riled investors look for big changes at GSK. Report
GSK chief outlines big plans in R&D. Report