GSK to close three research units, open four more amid hopes for sales growth in 2012
This article was originally published in Scrip
Executive Summary
GlaxoSmithKline's CEO Sir Andrew Witty is predicting a return to sales growth this year as the UK firm's radical shake-up of discovery and early development starts to pay off. The firm saw sales on a reported basis decline by 4% to £27.4 billion last year, driven down by the dramatic reduction in pandemic flu product sales in 2011 versus 2010, the loss of sales of the antidiabetic Avandia (rosiglitazone), which was withdrawn or vastly restricted in most markets in 2010 for cardiovascular safety reasons, and other factors including declines for the now off-patent antiviral Valtrex (valaciclovir), foreign exchange and austerity measures by governments. European price cuts alone took £320 million off 2011 sales, GSK said.