Dismantling of GSk

The deals being made by GSK upper management look to a goal of dismantling the company. Here is the latest:

http://www.thestreet.com/story/13172885/1/perrigo-buys-glaxosmithkline-novartis-consumer-medicines.html?puc=yahoo&cm_ven=YAHOO

When will Witty be held accountable? When will the board begin to see the ultimate outcome of his poor decisions? It's time for more pressure to stop this nonsense.

 

We just put the last beagles to sleep in the animal facility to today in RTP. It was a very sad day

 

Why is it that GSKers are not more outraged about what has been and continues to be done to this company? As more lose jobs, and even more can anticipate the same fate for cost savings, why is the dismantling of the company going forward without those who read this blog more vocal?

 

Because we are adults.

We live in a capitalist country where publicly traded corporations have tremendous flexibility to build or dismantle a corporation as they see fit.

 

The pharmaceutical industry needs a new business model, or society needs to change their expectation of new drugs continuing to be discovered. Between the increasing cost of getting a drug to market, and the decreasing profit margin of government- & insurance-controlled pricing, there is less and less money to reinvest. Also the gigantic Rx companies reject any small & medium drug candidates, because they need big money makers before the ROI makes sense. The current business model is in a death spiral. GSK will likely be sold & broken up into viable pieces (vaccine, Rx, OTC) within the next 10 years.

 

Dismantling of GSK: Silence of the Lambs or Determined adaptation to new environment

Evolution works.

The big therapeutically broad R&D companies are going through convulsions - this is evolution in progress.

It is brutal for employees, but the system will reach a new equilibrium.

Generic companies, CROs, CMOs, small speciality companies are expanding.

To those of us from big pharma, working in lean/mean generics or at CMOs does not look as 'nice' as working for a big-fat pharma.

But an employer is not interested in subsidizing 'comfortable / stable' jobs for pharma employees. They are interested in making a profit regardless of what mutations have to occur to survive.

A hit in the gut (or lower) for many of us.

But no real point in whining about it.

 

Comments here contribute to some of the problem...eg acceptance that GSK won't be one of the survivors in the big phama war of attrition. Compare Merck, BMS, Novartis, even Pfizer, all are involved in the evolution of new types of innovative medications, cancers, Hep C, cholesterol LDL/HDL, anticoagulants, and more.

Why has GSK become non-competitive and uncompetitive? I previously blamed this on the inexperienced management. Now, I have to look at the scientists too who are complacent, willing to accept what is thrown at them instead of trying to charter a new direction in novel drugs.

It's sad and pathetic that hereditary companies making up GSK had been innovative, known for bring new, useful medications to many. Now, the company is more and more satisfied with low margin vaccines and even lower margin OTCs. Little growth. No long term future.

 

Serial Incompetence (Dr. Tagine Maker Souvlaouki; Pig Virus, etc.) have been our undoing. But now it's too late. Their legacy of stupidity (sirtris? Really?) is irreversible.

 

And dierrdre, and andie and associated gutter vermin.

 

I've observed a big gap (of distrust) between upper management in R&D and the scientists. The due diligence on Sirtris was quite negative from the scientists on the team, but management went ahead and spent $700 million for a dry well. The IBS drug from CCX was held at arm's length until some clinical evidence was available - - it was a questionable "go" but Moncef wanted it, so full steam ahead to acquire it. Millions were spent before it failed miserably in Phase 3. Baldoni has surrounded himself with yes-men and yes-women so nothing innovative comes from that team; the latest re-org of his team was the typical musical chairs - same people just in different roles, so expect a continuation of mediocrity & risk-averse behavior. The current environment is about staying busy with all kinds of distractions, but very few of them will make any difference in the fundamentals of drug development.

 

Tell me about Myodil R&D

 

What class-action, slip-and-fall, ambulance chasing firm do you represent?