It's been 3 years since Glaxo reorganized its R&D department into 38 teams or drug performance units (DPUs) in an effort to boost R&D producitivity. In addition to the 38 DPUs the company also has 50 more external partnerships that primarily are responsible for drug discovery.
In adopting this model, GSK follows four key principles: focus on the best science, re-personalize R&D, externalize R&D and focus on ROI. In doing this, GSK has reduced its R&D bugdet from $5 B to about $4.4 B, shifted its internal discovery efforts from 60% down to 38% and boosted its internal development efforts to 62% up from 40%. It is now targeting an ROI on R&D of 14%.
Now, GSK is at the beginning of a new 3 year cycle and its time to evaluate the success of the DPUs to see if they get an extension or not. In the meantime, GSK's R&D Chief, Moncef Slaoui, says he's learned from Hollywood -- rely less on your own studio for hits. See Fierce Biotech.
Posted by Bruce Lehr Oct 11th 2011.