Drugs Companies Face Deeper Cuts in Research

More bad news for "big pharma" staff.
Drugs companies face deeper cuts in research - Times Online

I have to declare an interest here - I am an ex-GSK employee from the SmithKline Beecham part of the many-headed hydra. The dash for growth that has added headcount to big pharma in recent years is reversing and big layoffs are all around us. Most of the big companies are cutting thousands. It is a difficult time for those affected and will have ripples across the whole industry.

However, one of the long term trends mentioned by the article is that GSK is planning a move to branded remedies for curable disease in developing markets, and away from new drugs for tricky diseases that are only affordable in developed countries. This is laudable at one level, although only a profit-driven pragmatic necessity. It will, however, have the effect of exposing GSK to the full brand-eroding effects of counterfeiters and their knock-offs - which are rife in most developing markets. GSK will need to be on its toes to avoid revenue leakage and potential liability issues from other people using its brand equity but not its quality standards.