Glaxo Cuts 40 Percent Of Research At Some Sites
11 CommentsBy Ed Silverman // June 10th, 2008 // 3:50 pm
And so the Avandia fallout continues. Having already whacked a factory and thousands of employees, particularly sales reps, the drugmaker is slashing all sorts of science jobs at its US facilities - Research Triangle Park in North Carolina and Philadelphia. At least 350, or 2 percent of global R&D, not counting cuts in prior months.
A Glaxo spokeswoman writes us to say: “Science and technology are evolving rapidly and like the rest of the pharma industry, it makes sense for GSK to make sure it stays at the forefront of new developments. To do that, we’re continuing to reshape R&D in order to take advantage of new scientific opportunities. Unfortunately, there have been job losses as a result of restructuring and there have been some jobs eliminated in R&D in the US.”
Which scientific opportunities could she be describing? Well, Glaxo two months ago agreed to pay $720 million for Sirtris Pharmaceuticals, which is developing a fountain-of-youth pill. Basically, Glaxo is betting - some say excessively - much more on someone else’s science than its own.
The move also comes just after Andrew Witty succeeds JP Garnier, who walked away with a golden parachute but left angry investors, demoralized employees and a pipeline thinner than the hair on his head. Interestingly, an anonymous poster on CafePharma last October wrote this week’s cutbacks would occur as a way of convincing investors the new ceo would take decisive action.
Hat tip to In The Pipeline
anonymous
Ed, great link. The comments section is worth reading. This is a slice of the real life on the pharmaland. Don’t take anything for granted
Paul
Thanks Dr. Nissen
Former BP
GSK employees can thank their management team for being such a bunch of greedy dogs. Stupid decision after stupid decision. Cover-up after cover-up. All liars and thieves!
Doc
Paul,
Layoffs are not easy to deal with, having been through several with my pharma company, but Nissen is the least of your problems at GSK. Avandia has some real issues and unfortunately, GSK decided to try and overlook/ obsfuscate/ deny them - as the author Jim Collins wrote in “Good to Great”, management needs to look in the mirror first when there is a problem. Nissen did patients a favor!
Phed-Up
48.2 % of metabolic scientists at RTP to be exact
Bob Freeman
Re all the R & D alliances that have been struck over the past few years: eventually drug candidates will emerge from these alliances and will likely carry hefty royalty payments (assuming the smaller company wasn’t acquired–another issue). One can’t help wondering what the pricing implications are. Certainly it’s been a factor in the past but the extent to which these deals will influence price levels will be interesting to watch.
To me, it looks as though the new operating model is a Sales & Marketing Organization with medical affairs, PR, and other supporting divisions aligned with product marketing teams.
Who will be responsible for drug safety, social responsibility, etc. in this model?
I’ve been “right sized” in several companies. While surviving, the first year to 18 months’ productivity is organizational design.
Nathan
Lawmakers and critics have scoffed for years at PhRMA’s assertion that reductions in profit will bring about reductions in medical R&D. I wonder what those same people say now. It’s impossible to deny that pharmaceutical research is essentially in a freefall. Many, maybe most, of these people being laid off will never find meaningful employment in R&D again. The jobs just don’t exist.
I’ve already thought through my job search strategy when my day arrives.
1) First 2 months, seek employment at biotech/pharma companies similar to the employment I currently have.
2) Next two months, extend my job search to include non-R&D employment such as the FDA, USPTO, law firms, etc.
3) Next two months, look for academic jobs - first at small colleges, eventually maybe teaching high school.
What kind of a future do the life sciences have in the face what is going on? It’s a sad state of affairs we are in right now…
SeenThisBefore
Prelude to another round of M&A?
Observer
These Big Pharma companies continue to cut off their nose to spite their face. r & D is not the problem! Commercial and management are the big problems! The marketeers continue to ignore rules, regulations, laws and ethics, putting the companies at risk. The management teams continue to show their business stupidity. But in the end, the dedicated, hard-working employees get the ax while the big shots protect their own butts. The industry is doomed and the future will not be pretty.
Former BP
GSK adds to the Big Pharma bloodshed! Non-scientific, non-medical, egomaniacal, greed-driven management in the pharmaceutical industry seeks only to maximize current profits and stick their head in the sand regarding the future. They have been ruining the industry for the past 10 years and will drive it completely into the ground before they’re done. In the meantime, they’ll suck millions out of the companies to cover their undeserved, outrageous and salaries. Very unfortunately, it’s the rank and file that are hurt while the culprits for the demise slither on!
Nathan
Below is a link to a news article about the layoffs. Here’s an interesting quote: “The cuts come as part of plans announced in October…to save $1.37 billion by 2010 by trimming jobs in sales, manufacturing and research. Meanwhile, Glaxo has opened a facility in China in the last year that houses 400 researchers specializing in neuroscience, Stubbee said. But she said that job cuts in Europe and the United States are not related to Glaxo’s growth in Asia.”
The cuts in the US and Europe are not related to the growth in Asia? Were we born yesterday??
http://www.philly.com/philly/jobs/20080611_Report__Glaxo_cutting_search_jobs.html