GSK shifts 2,200 posts for 'growth'

Share this article:
Instead of merely slashing reps to trim costs, GlaxoSmithKline is relocating the positions, said CEO Andrew Witty.

Last year, the company announced a 12% reduction in sales forces. In a third-quarter earnings presentation recapping the firm's return to top-line growth, Witty said his company's growth strategy involves shifting some of those US and European sales roles over to Asia-Pacific and emerging markets.

“Just over the last year or so,” the chief executive said in a web video, “we've reduced by around 2,200 the number of sales personnel in our established Western markets, and we've increased by around 2,200 the number of sales personnel in our emerging and Asia-Pacific markets—that's a good example of how we are reallocating resources to go for growth.”

The shifts are reflected in quarterly sales, up 25% in emerging markets and 19% in Japan. That's due to growth in pandemic flu vaccine and anti-viral Relenza, which is getting more government orders for swine flu, along with devices. Meanwhile, less than a third of total sales came from the “small white pills/Western markets” of the US and Europe, the company said.

In the last two months, the firm also received FDA approvals for cervical cancer vaccine Cervarix, oncology drug Votrient and Arzerra for oncology and rheumatoid arthritis.

As Witty sees it, simplifying the business model will remain a strong focus: “We continue to look for ways to drive greater efficiency and disinvest in areas which we believe no longer serve us well.”
Share this article:
You must be a registered member of MMM to post a comment.

Email Newsletters

MM&M EBOOK: PATIENT ACCESS

Patient access to pharmaceuticals is a tale of two worlds—affordability has improved for the majority, while the minority is hampered by cost, distribution and red tape. To provide marketers with a well-rounded perspective, MM&M presents this e-book chock full of key insights. Click here to access it.

More in Features

Is your marketing strategy stuck in 2005?

Is your marketing strategy stuck in 2005?

It is not enough to just have a killer black book or Rolodex. The market needs agile, swift marketing

Is guidance stifling social media?

Recent FDA draft guidance was meant to help companies create FDA-compliant tweets and handle third-party misinformation on the web. What other obstacles lie in the path of effective social media use?

FDA social media guides draw flak

FDA social media guides draw flak

Two FDA guidance documents on how health product manufacturers may participate in social media have drawn criticism from industry and consumer groups.