GlaxoSmithKline plc is shaking up its strategy.
According to the company, it is looking to boost growth and reduce risk by diversifying its global operations through M&A and alliances. With generics crowding the market, it's a popular strategy for drugmakers, including
Novartis AG and Johnson & Johnson.
According to GSK chief executive Andrew Witty, the company will make additional investments in vaccines and consumer healthcare and expand into biopharmaceuticals. On July 14, the company announced it will pay about $2.74 billion to acquire Swiss biotech
Actelion Ltd, which makes a sleep disorder drug. And while acquisitions are part of the strategy going forward, Witty says not to expect many more high-dollar acquisitions. Smaller bolt-on deals are much more likely.
GSK is also aligning itself with generic drug companies. On Wednesday it announced
a licensing and supply agreement with South Africa's Aspen Pharmacare Holdings Ltd., which builds on an earlier deal announced in June in which Glaxo
divested four pharmaceuticals that no longer held patent protection to Aspen. In addition, GSK is considering
spinning off some of its early-stage drugs into a standalone company.
- Maria Woehr
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