GlaxoSmithKline to refocus some research and seek efficiencies, despite posting huge 4th-qtr 2009 profits rise; applause from Science Minister

Although not confirming recent speculation of 3,000 or so job cuts, UK headquartered drugs giant GlaxoSmithKline revealed that it plans to cut more costs, aiming for savings of some £500 million ($802 million; R&D 50%; SG&A 50%) by 2012, and abandon some areas of research - including depression and pain, instead focussing on neurodegenerative and neuroinflammatory diseases such as Alzheimer's, multiple sclerosis and Parkinson's disease - in order to improve R&D productivity.

The move comes as a surprise, given that GSK's antidepressants franchise generated annual sales of over £2 billion, including Wellbutrin (bupropion) and the controversial Paxil/Seroxat (paroxetine) which has been the subject of litigation.

GSK chief executive Andrew Witty explained: 'there are specific areas of research where, for whatever reason, we just no longer believe we have the same likelihood of success, or perhaps the cost of being successful makes it unattractive compared to others.'