Thursday, February 07, 2013
Glaxo Plans To Cut Costs To Offset Weak Sales
LONDON (Reuters) — GlaxoSmithKline plans to cut costs in its struggling European drugs division and promised investors a return to growth this year, after failing to deliver a hoped-for recovery in sales and profits in 2012.
The company, Britain’s biggest drug maker, said on Wednesday that a new program to restructure European operations, drug manufacturing and research would save at least about $1.6 billion annually by 2016.
After putting a number of major drug patent losses behind it, Glaxo had originally banked on pulling out of its trough in 2012. In the event, sales were held back by larger-than-expected drug price cuts in austerity-hit Europe.