Witty is named as new chief at GSK

Oct 9 2007 by Iain Laing, The Journal

ONE of the world’s largest pharmaceutical firms GlaxoSmithKline has announced a replacement for chief executive Jean-Paul Garnier.

Andrew Witty, 43, currently president for Glaxo’s European pharmaceuticals arm, will succeed Mr Garnier when he retires at the end of May as head of the company which employs more than 2,200 staff in Barnard Castle in County Durham and Ulverston in Cumbria.

Mr Witty joined Glaxo in 1985 and has held a number of senior roles within the group, including senior vice-president Asia Pacific, based in Singapore. Whilst in Singapore, he also acted as economic adviser to the Governor of Guangzhou, China.

Mr Garnier, 60, has been chief executive of the group since January 2001 following the merger of SmithKline Beecham and Glaxo Wellcome.

He joined SmithKline Beecham in 1990 and became chief executive in 2000.

In 1997, Mr Garnier received the Chevalier de la Legion d’Honneur – an award founded in 1802 by Napoleon I, which recognises individuals for their civilian or military accomplishments. He is also a member of Gordon Brown’s International Business Advisory Council and in 2006 was named on the global list of top 20 chief executives by the Best Practice Institute.

Drugs giant Glaxo reported annual profits of £7.8bn last year on total pharmaceutical sales of £20.1bn.However, profits have taken a hit in the current year from the weaker US dollar and falling sales of its key diabetes treatment Avandia after reports suggested it increased the risk of heart attacks in patients. Glaxo has strongly denied the accusations.

The company specialises in medicines in six major disease areas – asthma, virus control, infections, mental health, diabetes and digestive conditions. It is also a leader in vaccines and develops new treatments for cancer. With a strong emphasis on research the company claims to spend more than £300,000 every hour on researching and developing new medicines.

It also makes over-the-counter drugs Panadol and Gaviscon as well as Nicorette and Ribena. Glaxo employs over 100,000 people in 117 countries. City analysts said that Mr Witty’s experience in driving volume growth in Europe in the face of falling prices would be valuable for guiding the US business, which is currently experiencing similar challenges.