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Glaxo global chief rules out mergers, says EMRs as an issue is 'meaningless'

Glaxo Wellcome PLC chairman Sir Richard Sykes today ruled out any merger moves by the pharmaceutical giant with other groups in the global healthcare industry.

Sir Richard, who is in Bombay these days, addressed the Bombay Chamber of Commerce and Industry on the ''Third Generation Pharmaceutical Research and Development''.

He said the merger and acquisition activity witnessed in the healthcare industry in the recent times is on account of the pressures companies are facing on account of growing competition. ''Glaxo Wellcome is a strong company, which has registered a two-digit growth in sales and this has provided us an opportunity to become more efficient,'' he said.

To a question whether the company has applied for any exclusive marketing rights or patents for its products, he said that Glaxo Wellcome is developing two products, which would enter the market in 2005.

He added that the company has not applied for an EMR but had submitted product applications for the two products in the 'mailbox'.

''EMRs as an issue is meaningless,'' he opined.

On Glaxo's India plans, Sir Richard said that the company is working on introducing vaccines in the Indian market and the first delivery would be in February, 1999.

Earlier, addressing corporate heads and executives, he said that the key to success in the healthcare industry is delivering innovative and value-added products to the society.

He said that research by major pharma companies should lead to bringing a change in technology for the benefit of the society.

Emphasising on development of genetics, he said that it enables in identifying factors as to why a patient has got a particular disease. He further said that researchers have identified many of the genes associated with common diseases.

He noted that ten years back, the market was driven by quality of products, which were overtaken by cost considerations five years back. ''Now the emphasis is on value to the consumer,'' he remarked.

Sir Richard said that India holds a vast potential for healthcare and pharmaceutical industry. ''What is required is world-class intellectual property rights. Companies wanting to invest in India should have been given an assurance for 'market exclusivity' before the products can be opened for other companies, he said.

He said that there has been a lot of controversy over patenting of genes. He emphasised on evolving a consensus over the issue of patents. He said that highly-trained and skilled scientists would be needed to utilise the modern technology.

UNI

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