GSK Makes Cuts as It Implements New R&D Focus on Oncology, Immunology and Genetics

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Last summer, GlaxoSmithKline’s head of R&D Hal Barron laid out the framework for the company’s long-term strategy that included a focus on oncology, the immune system and genetics. As the company implements that strategy, some redundancies are being eliminated within the company and that means layoffs.

First reported by U.K.-based The Comet. GSK is making cuts at its facility in Stevanage. A company spokesperson confirmed with the U.K. publication that the layoffs were directly associated with the 2018 R&D strategy announcement. Since Barron announced the new approach to R&D, the spokesperson said the direction of the company’s portfolio has become clearer and prioritized innovation and “moving towards delivering a pipeline of transformational medicines with a focus on immunology, genetically validated targets, and finding platforms and technologies that amplify our science.”

“We have identified where changes are necessary to ensure we can fully support our evolving pipeline priorities. We anticipate a small number of roles will be directly impacted by these changes but continue to expect GSK's R&D operations to grow overall with increased investment,” Tim Foley, director of corporate media relations told BioSpace.

Foley did not provide details on how many cuts will be made at Stevanage, nor when they were expected to be implemented. He said the company's first priority is ensuring that its employees are "kept fully informed of any proposals and changes as they are implemented."

Barron took over as GSK’s chief scientific officer in 2017. When Barron announced the new strategy last year, he said the new focus will require a shift within the company’s R&D culture. That shift will include collaborations with external partners, as well as the hiring of new talent. It also seems that the shift will include some layoffs.

Following Barron’s June announcement, in October, Alex Hoos, head of oncology at GSK, indicated that the company was shifting away from its respiratory base due to increased competition and loss of patent exclusivity. Hoos said the company could narrow its drug development focus to aim at products that will generate growth, in particular in the area of oncology. As of February, GSK had 16 oncology assets in clinical development with a potential for three launches by 2020.

Since GSK initiated this new focus, the company has made several key moves to support the plan, including the December 2018 acquisition of Tesaro Oncology and its PARP Inhibitor, Zejula. Tesaro’s Zejula was the first PARP inhibitor to be approved by the FDA that does not require BRCA mutation or other biomarker testing. When GSK announced the deal for Tesaro, Barron said the company has a strong belief that PARP inhibitors are “important medicines that have been underappreciated in terms of the impact they can have on cancer patients.”

In addition to the Tesaro deal, in February, GSK struck a deal with Merck KGaA, Darmstadt, Germany to collaborate on the development and potential commercialization of M7824, an immunotherapy for difficult to treat cancers.

That increased focus on oncology has meant that GSK has decreased its focus on other spaces, including respiratory, which had been a bread-and-butter staple for the U.K. company. In February, GSK made some cuts to its pipeline. GSK terminated eight programs, mostly in its respiratory line. GSK shed two treatments for chronic obstructive pulmonary disease, an asthma treatment and a developmental treatment for acute respiratory distress syndrome and cough. Additionally, the company cut a combination treatment in transthyretin cardiomyopathy and a treatment for idiopathic pulmonary fibrosis.