GSK announces ‘major change programme’

The new £1.5bn programme will continue to focus on simplifying GSK's supply chain, and on "building the group's capabilities in manufacturing and R&D, as well as restructuring in our European business". Options to maximise efficiency and future performance in Europe were currently "under evaluation", said the company. The new programme is expected to deliver savings of at least £1 billion a year by 2016. CEO Sir Andrew Witty (pictured) said the initiative included a series of technological advances and opportunities to eliminate complexities, which GSK believed could transform cost competitiveness in both manufacturing and R&D. He continued: "Through this we are seeking to simplify our supply chain processes, shorten cycle times, lower inventory levels and reduce our carbon footprint." The company planned to further restructure its European pharmaceuticals business "to reduce costs, improve efficiencies and reallocate resources to support identified growth opportunities in these markets". Reporting on its 2012 performance, GSK said revenues at £26.4bn (2011: £27.4bn) had been flat, generating pre-tax profits of £6.7bn (2011: £7.7bn), adding that it was to carry out a strategic review of its Lucozade and Ribena soft drink brands.