Abstracts » Business

Healthy Glaxo SmithKline creates a gene giant

Article Abstract:

Glaxo Wellcome and SmithKline Beecham are carrying out a 107 billion pounds sterling merger, and plan investments, with no major disposals or mention of major job losses. The new company will invest 2.4 billion pounds annually on research and development, and cost savings will be invested in research. Both companies saw a drop in their stock prices following the merger announcement, and this may be because planned savings are not as large as expected, partly because both companies had already started to cut costs. The headquarters of the new company will be relocated to the US from Britain.

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Glaxo SmithKline, king of kings?

Article Abstract:

The merger between SmithKline Beecham and Glaxo Wellcome has been followed by a drop in their combined stock market value. The merger could bring cost savings valued at a capitalised 6 billion pounds sterling. The stock price drop could bring an opportunity for investors. SmithKline's product pipeline includes diabetes treatment, Avandia, though 46% of the company's pharmceutical sales for 1999 were accounted for by anti-depressant, Seroxat and anti-infective, Augmentin. The new group would have a total of 23 products going through final clinical trials.

SmithKline Beecham PLC

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Glaxo faces drug blow

Article Abstract:

Glaxo Wellcome may have to abandon its G-570 diabetes drug in order to obtain regulatory approval for a planned merger with SmithKline Beecham.

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