Sector News

GSK to shutter central neuroscience R&D hub in China

August 8, 2017
Life sciences

After reports surfaced in the Chinese press this week, GlaxoSmithKline has confirmed to FierceBiotech that it will be shutting down operations at its Shanghai R&D base as it looks west.

The U.K.-based drugmaker told FierceBiotech, “Following a portfolio review and prioritization, GSK has decided to close its Neuroscience R&D Centre in Shanghai and move key programs to its global R&D hub in Upper Providence in the U.S., where they will benefit from co-location with other pipeline R&D programs.”

“The China R&D development organization will continue to be based in Shanghai and is set to expand over the next two years to accelerate the development of new medicines. We remain committed to China and will focus our R&D efforts in China on the needs of China, at both our Shanghai site and our Institute for Infectious Diseases and Public Health in Beijing.” It did not say how many staffers would be affected.

This comes less than a year after the company looked to strengthen its China R&D commitment. Li Min, GSK’s global head of neurosciences and general manager of R&D China, said last year, as quoted by news site China Daily: “In the field of neurological diseases, we are very much committed to neurodegeneration and neuroexcitation. In medicine, you need to stay focused. You have to commit to one direction and make it happen.”

Two years ago, it launched the Neuro2020 project, encouraging partnerships with local universities, something Li said was “part of our five-year plan to establish both our research as well as connectivity to the rest of our ecosystem, especially in China.”

GSK has, of course, had a rather difficult past in the region. China is a major world economy with a growing middle class and the potential for big pharmaceutical sales and R&D, but tough policies led by a central and uncompromising government have made western biopharma expansion into China problematic.

Back in 2013, GSK became embroiled in a sex, lies and videotape-type scandal that saw allegations of bribery from certain sales teams in the region, with a deeper twist when a sex tape of former head of GSK China, Mark Reilly, in his Shanghai apartment with his girlfriend, was alleged to have been made, and then sent to CEO Andrew Witty. Witty has since been replaced by Emma Walmsley, who announced last month a major shake-up of the company’s R&D.

Walmsley said she was focusing GSK’s attention on two therapeutic areas in which it already has a sizable presence—respiratory and HIV/infectious diseases—and two in which it aspires to grow—oncology and immuno-inflammation. GSK will spend 80% of its R&D budget on top prospects in these areas. Neuroscience was not on her list of core areas to focus on.

By Ben Adams

Source: Fierce Biotech

comments closed

Related News

January 22, 2023

Sun Pharma to buy Concert Pharmaceuticals for $576m

Life sciences

Sun Pharmaceutical Industries has signed a definitive agreement to buy all outstanding shares of Concert Pharmaceuticals in a deal valued at $576m. Under the deal, the company will buy all shares of Concert common stock through a tender offer for $8.00 per share in cash upfront payment.

January 22, 2023

Novo Nordisk diabetes pill wins FDA approval for first-line use

Life sciences

The Food and Drug Administration on Thursday approved Novo Nordisk’s diabetes pill Rybelsus as an initial treatment to lower blood sugar levels, a label expansion that will allow it to compete more directly with other oral drugs from Merck & Co. and Eli Lilly.

January 22, 2023

Bayer feeling more heat from activist investors, this time from Bluebell

Life sciences

Since making an ill-advised $63 billion buy of Monsanto in 2018, Bayer has faced heaps of pressure from investors that have called for the company to oust its leadership and to restructure. Now comes new pressure from a familiar source. Bluebell Capital Partners has bought an undisclosed stake in the company and is agitating for a breakup, sources told Reuters.

How can we help you?

We're easy to reach