GlaxoSmithKline New CEO Announces Changes to Corporate Executive Team, Company Reorganizes in Bid to Reach Emerging Markets
PHILADELPHIA and LONDON, April 30 /PRNewswire-FirstCall/ -- GlaxoSmithKline today announced a number of changes to its Corporate Executive management team. In a message to employees, Andrew Witty, CEO designate, detailed new appointments and his new management team which will take effect on May 22nd when he assumes the role of Chief Executive Officer.
Outlining the context for these changes, Andrew Witty said: "It is clear that our industry is facing a rapidly changing environment. Demand for innovative medicines and healthcare products continues to grow, however we are also presented with increasing challenges, such as cost containment, regulatory pressures and generic competition."
To address these challenges, Witty stated that the company must work hard to increase GSK's global reach and presence, and ensure that vaccines, consumer healthcare and pharmaceuticals all play their full potential. He emphasized the need for GSK's business regions to drive sales growth, and announced new operational structures to expand and improve GSK's capability, particularly in emerging markets and in Asia.
"Emerging markets, such as Brazil, Russia, India, China and the Middle East, are significant growth drivers of the future. They are already contributing close to 25% of today's market growth and are forecast to grow even faster in the future, around triple the rate of western countries. It is essential that we have an operating structure that is dynamic and responsive to the opportunities in these markets," said Witty.
"I am therefore creating a new Emerging Markets region which will ensure that we devote the focus required to build on our excellent foundations in those markets and truly establish ourselves as a trusted, long-term partner, one that is actively working to address the specific healthcare needs in those countries," he said.
A new Asia Pacific region will also be created, which includes Japan and Australia. Witty noted that many of these countries have sophisticated and well-organized healthcare systems and that these markets represent "significant and immediate opportunities" for existing products and products which will be launched over the next few years.
As part of the changes to business regions, GSK has also realigned markets in North America (combining the US, Canadian and Puerto Rican businesses) and has established new operational areas in Europe to maximize their potential and opportunities for growth.
Witty also placed emphasis on the development of GSK's business through partnership and collaboration, and announced a new dedicated team for Corporate Strategy and Development:
"Making the changes required to develop our business for the next decade requires a rigorous and disciplined focus on corporate strategy. A key element of this new team's remit will be to proactively seek new business opportunities to expand our global reach and drive sales growth," he said. Finally, Witty also spoke to measures to improve processes and ensure that the company works effectively and efficiently. He also placed great emphasis on the need to sustain and develop the strong ethical culture of GSK:
"Ultimately, our culture and our people will be the key factors in our success. We need to ensure that we always do what is right for the patients and I want GSK to meet the highest standards expected of us by society," said Witty.
GlaxoSmithKline -- one of the world's leading research-based pharmaceutical and healthcare companies -- is committed to improving the quality of human life by enabling people to do more, feel better and live longer. For company information, visit GlaxoSmithKline on the World Wide Web at http://www.gsk.com.
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