Glaxo to outsource research and development business

British pharmaceutical giant GlaxoSmithKline (GSK) is planning to outsource research and development work in a bid to improve the number of new drugs it produces.

GSK claim that the growing complexities and the amount of data required by the authorities mean that it makes more sense to consider outsourcing work to contracted research organisations with relevant experience.

Tachi Yamada, GSK’s head of research and development, said: “It is a business model that is appealing from our point of view, and it is also appealing to our partners. We are starting to see signs that it is going to pay dividends.”

He added: “I think that eventually the output from them could be as wide as the output from our internal operations.”

However, Mr Yamada added there were still benefits of scale in early-stage research which requires the screening of chemical compounds, and in the late stages of development, when large and expensive human trials must be carried out.