British Drug Takeover Is Expected To Have Worldwide Repercussions

Repercussions Author: Peter Gwynne London-based pharmaceutical giant Glaxo plc's $14.1 billion acquisition in March of the Wellcome Foundation, another London drug power, is expected to have long-term repercussions--some good and some bad--for many scientists around the world. Researchers at the newly formed pharmaceutical firm--named Glaxo Wellcome plc, with facilities in Europe and the United States--face the prospect of layoffs in coming months, according to analysts. Some R&D personnel cu

Peter Gwynne
Jul 9, 1995

Repercussions Author: Peter Gwynne

London-based pharmaceutical giant Glaxo plc's $14.1 billion acquisition in March of the Wellcome Foundation, another London drug power, is expected to have long-term repercussions--some good and some bad--for many scientists around the world.

Researchers at the newly formed pharmaceutical firm--named Glaxo Wellcome plc, with facilities in Europe and the United States--face the prospect of layoffs in coming months, according to analysts. Some R&D personnel cuts have already been announced by the company.

At the same time, members of the international life sciences community can anticipate the promise of new funding, owing to a windfall that the acquisition has brought to the Wellcome Trust, a British research foundation started nearly 60 years ago with equity from the original Burroughs Wellcome company. The buyout of the charity's remaining shares in the Wellcome Foundation will add some $3 billion to its $8 billion endowment.

Scientists in the U.S., however,...