At a presentation to investors, GlaxoSmithKline (GSK) demonstrated that the company's unique R&D structure is delivering a large and diverse pipeline. GSK now has 147 projects in clinical development, spanning a variety of therapeutic areas and encompassing a number of pioneering approaches to treating patients in need.

The 147 projects include 82 new chemical entities (NCEs), 45 product line extensions (PLEs), and 20 vaccines. The pipeline is maturing as projects move into later stages of development; 98 are now in clinical Phases II and III/registration. GSK described how this innovative pipeline will underpin long-term growth, and highlighted several measures of increased R&D productivity and opportunity.

The company has 30 more NCEs in the pipeline than at October 2001, and has increased the number of NCEs in Phase II and III/registration from 23 to 44 today. GSK's goal is to bring more than 20 NCEs to Phase III development over the next three years, leading to an anticipated record number of filings over the next five years, many with the potential to reach blockbuster status. The company expects to make up to 16 significant product filings in 2004-5.

"By radically redesigning our R&D organisation we are tackling the problem of R&D productivity that currently plagues the industry," said Dr Jean-Pierre Garnier, chief executive officer of GlaxoSmithKline. "The impact of this bold move is clearly seen in the evolution of GSK's broad and deep pipeline of innovative medicines across a spectrum of key therapeutic areas."

GSK's R&D is structured to take advantage of size at the beginning and the end of the R&D process where large-scale research is needed - such as screening targets against compounds and conducting large-scale clinical trials. However, to bridge the interface between discovery and development, the organisation is divided into new, small, biotech-like business units - Centres of Excellence for Drug Discovery (CEDD) - that can take full advantage of flexibility and focus.

"Our new CEDD structure is working well. We are developing more quality compounds than ever before. This is enabling us to renew our pipeline in disease areas where we are leaders - like respiratory and psychiatry - and to build strong portfolios in areas like oncology and cardiovascular disease," said Dr. Tadataka Yamada, chairman of R&D at GSK.