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GSK expands restructuring

February 5, 2010 1:51 AM UTC

GlaxoSmithKline plc (LSE:GSK; NYSE:GSK) reported 4Q09 earnings on Thursday and said it will further expand its restructuring program that began in 2007. The company now expects an additional pre-tax annual savings of L500 million ($799.4 million) by 2012, split equally between R&D and SG&A. GSK, which also expanded the restructuring last year, is already expecting annual savings of L1.7 billion ($2.7 billion) by 2011. The pharma said it would not disclose numbers for a planned headcount reduction at this time (See BioCentury Extra, Thursday, Feb. 05, 2009).

GSK also plans to increase the level of externally sourced compounds in its pipeline through more option-based deals and proposed to stop discovery research in selected neuroscience areas, including depression and pain. The pharma will instead focus neuroscience research activities in neurodegenerative and neuroinflammatory diseases, including Alzheimer's disease, multiple sclerosis and Parkinson's disease. ...