Speaking of Idoxifene, SBH cites its future success as one of the reasons that they don't have to merge:
INTERVIEW - SmithKline<SB.L> does not need merger
LONDON, April 21 (Reuters) - SmithKline Beecham Plc <SB.L> chief executive Jan Leschly said on Tuesday his company had no need to merge, and promised strong organic growth.
In his first public comment since the collapse of merger talks with pharmaceutical rivals American Home Products Corp <AHP.N> and Glaxo Wellcome Plc <GLXO.L> earlier this year, Leschly told a telephone conference with reporters: "We don't need a merger. We are a very strong company. We have a bright future."
Leschly also said the company was still seeking ways to enhance shareholder value, but he added "we have no specific thoughts on that in any way."
"We never felt we needed a merger. The talks with Glaxo Wellcome <GLXO.L> would have made a strong company even stronger," Leschly said.
"What we are planning is a business with tremendous organic growth as an independent company. We think as an independent company we can be very successful."
Leschly said he expected to give further details on the breakdown of negotiations with Glaxo Wellcome to the House of Commons Science and Technology Committee on Wednesday afternoon.
He said a further sharp rise in research and development spending expected this year would be targeted principally at four leading development products -- Ariflo for chronic obstructive pulmonary disease and asthma, Idoxifene for osteoporosis and breast cancer, Avandia for diabetes and a new potent quinolone antibiotic.
"All four products could be what the market talks about as blockbusters," Leschly said.
He said both Ariflo and Avandia would take the company into new therapeutic areas, and noted the potential market for Avandia was much larger than that for insulin.
The quinolone antibiotic, designed to combat antibiotic resistance, would come on stream in time to pick up from the group's best-selling antibiotic Augmentin, which loses its patent in 2003.
Leschly compared Idoxifene to the Eli Lilly & Co drug Evista, which is also targeted at osteoporosis and breast cancer.
"We expect to file first in osteoporosis and then in breast cancer, and that will create a very big opportunity as well. These four products we need to invest in and want to invest in."
Leschly said the group's research and development update last week had been "well received by the financial community," despite a sharp fall in the group's share price, although there had been "some misunderstanding" in the press.
He said he was also confident the group would be able to maintain its operating margins despite the rise in expenditure on new products because of improvements in its gross margin, notably through tightening up its global supply chain.
"We are doing the right things for the business -- we are trying to make the proper investment for the business in the future and at the same time make sure we have an appropriate return in earnings per share."
Leschly, who has come under considerable media and institutional pressure since the talks with Glaxo collapsed, said he did not believe shareholders had any reason to be unhappy.
"I don't see any reason they should be unhappy, if you look
15:10 04-21-98
|
