New boss calls for GSK to reduce drugs dependency

THE new head of GlaxoSmithKline said the drug giant must change to survive the growing threat of generic competition for its leading products.

Andrew Witty, who became chief executive in May, wants to create a more diversified global business to reduce GSK's dependence on a small number of drugs, boost productivity, and create a more cost-efficient company.

"It is clear that GSK must change if it is to be successful in the future," Mr Witty said.

His comments came as the group posted pre-tax profits of £1.84 million in the three months to June 30, three per cent below last year.

Revenues were also two per cent lower at £5.87 billion after lower sales of diabetes treatment Avandia – hit by a health scare last year – as well as generic rivals to its drugs in the US.

Mr Witty said the pharmaceutical sector faced "immense challenges" as the demand for better and cheaper medicines added to pressure from copied treatments.

He said GSK would look to make new investments in fast-growing areas such as vaccines and consumer healthcare.