GSK emphasizes need for hefty R&D spend

The newly-formed GlaxoSmithKline will result in few layoffs of staff,but savings from any job cuts will help defray rising costs of R&D, according to the firm's chief executive, Jean-Pierre Garnier, who noted that GSK will significantly increase spending on research in the USA.

Speaking at the unveiling of the firm's new logo in Philadelphia, Dr Garnier noted that some duplication of roles within the firm is inevitable. He said that "in the grand scheme of 105,000 employees, this is not a major event, and it takes place equally across the world. The duplications exist in Germany, they exist in Japan, they exist here [the USA]," according to an Associated Press report, but Dr Garnier emphasized GSK's "commitment to invest whatever savings come out of this duplication in research."

However, the firm's enthusiastic start to life as GSK took a knock during the week, following the news that George Morrow, chief executive of Glaxo Wellcome's North American operations has left the firm to assume responsibility for worldwide sales and marketing activities at Amgen (he is to be joined there by Roger Perlmutter, formerly executive vice president of Merck Research Laboratories, who will run Amgen's R&D unit).