What's likely to happen in R&D

Is there any timeline for the closure of RTP R&D. Is RTP closing for all other groups?

 

They close RTP but Boston survives? Amazing.

 

Don't sit idly by as this happens RTP staff, speak out. Write to your local, state and national representatives. Let people in the community know just how devastating closing this site will be, not just to the thousands of direct employees but to the thousands of others in the community who work with or provide support to the sites. These ARE political decisions and the individuals in gsk who make them very much respond to political pressure and public perception of their performance (or lack thereof). Get all of those with a stake in this involved. Too many have worked too hard over the years to see the RTP legacy ruined by the current leadership. As the saying goes, make things happen, watch things happen, or wonder what the f--- just happened!

 

HUH? First, there's no definitive statement that RTP will completely close. And if something like that would happen, why do you say it would be political? It's economics. The more sites, the greater the cost of upkeep, maintenance, travel, etc. It's always been the way, and GSK has had, and still has, too many operational sites.

This is not in the UK, where their are government oversight & review about such actions. Not in the US where free market is more freely operated.

 

The UK government can do nothing about it. They had a big investigation when Pfizer
pulled out a couple of years a go, but they couldn't stop it. They did give them a hard time when they tried to buy AZ later though.
GSK and sir andy will want to stay friends with the British government so very large scale R&D cuts there will not happen.

PV being live in RTP is confirmation that R&D there is finished.
They might transfer people to Philly.

 

from Bloomberg

GlaxoSmithKline Said to Plan Reorganization, U.S. Cuts
By Albertina Torsoli and Oliver Staley
November 29, 2014 7:01 PM EST

The GlaxoSmithKline company logo is seen on the GlaxoSmithKline Plc headquarters in London. The changes will involve operations in the U.S., where London-based Glaxo has struggled to sell respiratory medicines in recent months.
Photographer: Matthew Lloyd/Bloomberg
The GlaxoSmithKline company logo is seen on the GlaxoSmithKline Plc headquarters in London. The changes will involve operations in the U.S., where London-based Glaxo has struggled to sell respiratory medicines in recent months.

GlaxoSmithKline Plc (GSK) is planning a reorganization that will include hundreds of job cuts in the U.S., people familiar with the situation said.

The drugmaker is poised to announce a workforce restructuring as soon as this week, said the people, who asked not to be identified discussing a private company matter. The changes will involve operations in the U.S., where London-based Glaxo has struggled to sell respiratory medicines in recent months. Deirdre Connelly, president of North American operations, is scheduled to speak to U.S. employees on Dec. 3, two people said.

Glaxo pledged in October to cut costs by 1 billion pounds ($1.56 billion) over three years, with half the savings coming in 2016. U.S. sales are flagging amid increased competition for the company’s best-selling Advair asthma medication. Analysts estimate that sales of the drug will decline 30 percent by 2015, from $5.3 billion last year.

This has put Connelly under pressure. The former Eli Lilly & Co. executive was part of a management reshuffle last month, and now reports to Abbas Hussain, Glaxo’s head of global pharmaceuticals, rather than directly to Chief Executive Officer Andrew Witty. Glaxo shares have fallen about 8 percent this year, while the Bloomberg Europe Pharmaceutical Index has climbed about 22 percent.

In October, “GSK announced a new restructuring program to refocus our global pharmaceuticals business and deliver cost savings,” Glaxo said in an e-mailed statement on Nov. 28. “The aim of this program is to improve performance by taking unnecessary complexity out of our operations and establish a smaller, more focused organization, operating at lower costs, that supports our future portfolio.”
‘Patients First’

Each business unit is “currently deciding how to respond to this challenge,” Glaxo also said. “When we do have proposals, we will first share those with our employees.”

Glaxo told workers this month it would tweak one part of its “patients first” program in the U.S., which was designed to disconnect compensation of sales representatives from prescription numbers, one person said.

While the program remains in place, changes are being brought to the way sales professionals are tested on knowledge of products as part of their evaluation, two people said. Sales representatives continue to be judged on simulations of interactions with doctors and by manager observations of real meetings, one person said.
U.S. Fine

Connelly unveiled the initiative in 2010, saying the company would no longer link bonuses to sales targets and instead reward sales staff for their scientific knowledge. The changes came as Glaxo grappled with probes into its sales and data disclosure practices. The company eventually paid a $3 billion fine to settle U.S. criminal and civil investigations and signed an agreement with the U.S. government pledging to reform sales and marketing methods.

Some top managers in the U.S. have left Glaxo since Connelly’s appointment in 2009, in part driven away by the new approach, several people said. One reason for Glaxo’s poor performance in the U.S. may be that the sales force no longer has the right incentives, some analysts have said. Witty intends to expand the model globally by early next year.

“Top performers under our previous sales compensation model continue to be some of the top performers under the patient-focused model we introduced in 2011,” Glaxo said in an e-mailed statement on Nov. 28. “We remain resolutely committed to our commercial model and are on track to role out this approach globally.”

Glaxo has about 99,000 employees in 115 countries, with about 17,000 in the U.S., where the company gets almost one-third of its sales.

The drugmaker is hoping a new selection of lung medicines led by Breo and Anoro will help make up for Advair’s shortfall. So far, sales of the new drugs have fallen short of analyst estimates.

For Related News and Information: Glaxo Pledges to Cut Costs as Profit Beats Analyst Estimates Glaxo Rising Star Connelly Under Pressure as Lung Drugs Falter Glaxo’s Witty Has Bigger Problem Than China as Sales Slump

To contact the reporters on this story: Albertina Torsoli in Paris at atorsoli@bloomberg.net; Oliver Staley in London at ostaley@bloomberg.net

To contact the editors responsible for this story: Heather Harris at hharris5@bloomberg.net Elizabeth Wollman

 

That's because there are a lot more creative minds up there in Boston. Here in RTP managers are more interested in Job titles, the neighborhoods they live in, and do everything they can to position themselves away from new molecular entity accountability in favor of simple non-scientific management positions. But the rooster has just landed at RDU - and is coming home

 

Those in Boston don't care about job titles or where they live? You've got to be living on Mars.

 

OH Yeah? Well we'll see about that in a few hours - exciting - this waiting period isn't it? Let's see what happens to Boston Versus RTP.

 

You're deluded if you think this has anything to do with any of the upcoming results coming in the announcements.

 

one thing is for sure - you are an X gsk employee. Get over it and move on - there is life after gsk you know.

 

What are the numbers of positions lost in Philly and RTP?

 

GSK filed an unemployment/layoff notice with the state of North Carolina with an estimate of 900 employees today. That number would include everyone in NC (RTP/Zeb) who may lose their job: R&D, marketing, sales, etc., but the vast majority are expected to be lost from the main GSK RTP site on Moore Drive.

 

Umm excuse me...The 900 number does not include and of the clinical personnel being asked to join another company or anyone else who has been offered an option of moving to UNC or Philadelphia. Wow, I can't believe I had to log on and say this.