GSK to woo City with R&D presentation
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.The UK pharmaceuticals giant GlaxoSmithKline has launched a City charm offensive to try to restore confidence in its drug research operations.
Jean-Pierre Garnier, chief executive, plans to announce an "R&D day" for investors and analysts later in the year. The event, usually an annual fixture in a pharmaceutical company's calendar, has not taken place since GSK was formed by the merger of Glaxo Wellcome and SmithKline Beecham in 2000.
Its absence led to criticism that the company may not be getting the best out of its giant R&D capability, which employs 16,000 scientists and was reorganised at the time of the merger into competing "centres of excellence" to mimic fast-moving biotech companies.
Mr Garnier is expected to take the opportunity of GSK's annual results presentation next month to name a date. Analysts who have been in to see the company in recent days believe the event will take place "late in the year".
Mr Garnier will point to evidence that GSK's centres of excellence may now be producing results. Analysts have seen new figures showing that GSK identified 41 new drug candidates in 2002, up from 23 the previous year, and began testing 23 new drugs on humans, almost double the number in 2001.
In an investment note by Goldman Sachs, the analyst Vikram Sahu says: "Although visibility for this early-stage pipeline is limited, investor confidence should improve. We believe that GSK's progress with its pipeline will enable management to host its first post-merger R&D event for investors in November."
Longer-term, Mr Garnier is said to have an open mind about the ability of giant pharmaceuticals companies to reverse a longstanding decline in the number of new drugs being developed and launched. Investors have fretted that size is proving a barrier to success, as bureaucracies within Big Pharma stifle innovation.
Concern about research productivity has dogged GSK shares in the past year, as have worries over the solidity of drug patents and the US launch of a cheap copycat of its leading antibiotic, Augmentin. Investors believe earnings could slow after next year because the company has run out of major new drugs to launch.
The stock rose 50p yesterday from a record low, closing at 1,100p. The poor share price performance aggravated the furore over GSK's attempt to double Mr Garnier's annual bonus shares and options package to £12m, which was abandoned in November.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments