GSK chief: Top pharma companies may not survive

Only a few of the top pharmaceutical companies will survive rising research and development costs, according to one leading industry spokesman.

J P Garnier, chief executive of GlaxoSmithKline, warned that many drug and pharmaceutical companies are currently investing in advertising and marketing as opposed to research and development and production.

Dr Garnier made his comments in an interview with Manager magazine, where he stated that the current ‘misdirection’ of funds, as well as growing costs for research and development, could lead to several business casualties, with only a “handful” of the major companies surviving.

“From 15 pharmaceutical companies that are important today, only a handful will probably survive. Hardly any of the large companies are in a position right now to invest enough money into research. A medium-sized company will hardly be able to spend enough on research and development.”

Dr Garnier’s comments follow recent news suggesting that GlaxoSmithKline is favouring well amid recent innovations from the firm. He said that a breakthrough in bird flu treatment achieved last month, highlighted the “renewed vitality” of the firm’s research and development arm.

The Times reports that trials show a potential GlaxoSmithKline vaccine provided a positive response in around 80 per cent of those who received it at low doses of 3.8 microgrammes. Though the vaccine is still in early stages of development, manufacturers believe that the results act as an indicator of its renewed performance in the company’s productivity and market confidence.

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