Friday, August 13, 2010

Glaxo Slaps Former Sirtris Execs - TheStreet

GlaxoSmithKline(GSK) has cracked down on two of its U.S. executives for selling the anti-aging supplement resveratrol without the company's knowledge or permission, and by doing so, conceivably undermining Glaxo's nearly $1 billion investment in resveratrol drug research.

The U.K.-based pharmaceutical giant ordered Cristoph Westphal and Michelle Dipp Thursday to cease selling a resveratrol dietary supplement through a nonprofit venture known as the Healthy Lifespan Institute that the two executives helped establish last year, TheStreet has learned.
Westphal and Dipp were both principal executives at Sirtris Pharmaceuticals when Glaxo acquired the company in 2008 for $720 million. Glaxo bought Sirtris for its expertise in developing drugs based on resveratrol, a chemical found in red wine which some research suggests may ramp up the metabolic activity in cells and could one day be used to treat diabetes, cancer and many other diseases.

Westphal and Dipp joined Glaxo after the Sirtris acquisition and continued to direct Glaxo's continuing efforts into resveratrol drug development. Unbeknownst to Glaxo, the two executives were also moonlighting as purveyors of their own custom-made dietary formulation of resveratrol. The resveratrol sold by Westphal and Dipp is formulated differently and is less potent than Glaxo's resveratrol drugs, according to the company.

Consumers could purchase resveratrol online from the Healthy LifeSpan Institute run by Westphal and Dipp at a cost of $540 for a one-year supply. The web site Xconomy first reported on Westphal and Dipp's extra-curricular activities Thursday.

Posted via email from Jack's posterous

No comments: