GlaxoSmithKline announces job cuts, acquisition of product

GlaxoSmithKline (GSK) has announced the credit crunch is forcing cuts to its workforce, while the company has also made the news by purchasing an oral product.

Some 850 jobs in GSK’s research and development (R&D) sector are to go ? part of an estimated 60,000 redundancies made throughout the pharmaceutical industry worldwide, the Times reported.

David Wield, director of the Economic and Social Research Council’s Innogen Centre, explained the industry is experiencing difficulties like many other sectors.

“There is seemingly no way to speed up and improve the drug discovery pipeline and heavily increased R&D has not increased the number of new drugs,” he said.

Redundancies and research unit closures are a result of this, Mr Wield concluded.

Meanwhile, GSK is to buy xerostomia (“dry mouth”) treatment Biotene for $170 million (101 million pounds).

The product, produced by US company Leclede, is marketed as mouthwash and toothpaste.

John Clarke, president of GSK Consumer Healthcare, said the purchase would contribute to the company’s aim of “building and growing a diversified healthcare business”.