GlaxoSmithKline opens several fronts in campaign to adapt to a changing market

The challenges facing the pharmaceutical industry have been well documented over the past couple of years. Faced with a significant loss of turnover from the patent expiry of several blockbusters, the effects of which are compounded by the shortage of new large-scale products emerging from the companies' R&D pipeline, some commentators have argued that nothing less than a new business model is called for.

One company that has, over the past couple of years, shown signs of innovation in its approach to drug R&D and marketing is the UK-headquartered GlaxoSmithKline.

The appointment of Andrew Witty as chief executive at the London-based pharmaceutical giant in May was followed by the announcement of a new set of strategic priorities (Marketletter July 28). During the months running up to his taking over the CEO position, Mr Witty consulted with the firm's shareholders, many of whom were reported to be dissatisfied with what the UK Financial Times described as "years of underperformance" in the equities market. The message the new chief took was "more growth with less risk."