GlaxoSmithKline (GSK) released its fourth quarter and full year 2011  earnings 

 on Feb. 7, 2012. In the report, the company tracks its R&D performance, and  calculated the return on R&D to be 12%, up from 11% in 2010, and closing in  on the company’s goal of a 14% return.

  In 2008, GSK reorganized its basic research effort to make it more focused  and more competitive, mimicking the environment in the biotechnology industry.  At that time, GSK created Discovery Performance Units (DPUs) within its Centers  of Excellence for Drug Discovery. These units are small, comprising between  5–70 scientists, with each group focusing on one particular disease or pathway.  Funding for the groups is competitive, with reviews every three years by a  panel containing senior GSK R&D leaders and individuals from outside of the  company operating in venture-capital, biotechnology, or pharmaceutical  investment. The panel allocates funding according to assessments of potential  returns on investment, scientific quality, and opportunity.

  This year marks the first of the three-year review cycles for the DPUs.  According to the earnings report, four new DPUs have been created and three  have been closed. Of the remaining DPUs, six have received increased  investment, and five have had investment decreased. Information about exactly  which DPUs were affected was not included in the report. More information on the  DPUs will be provided in an in-depth meeting for investors and analysts on Mar.  29, 2012.

News

GlaxoSmithKline (GSK) released its fourth quarter and full year 2011 earnings report on Feb. 7, 2012. In the report, the company tracks its R&D performance, and calculated the return on R&D to be 12%, up from 11% in 2010, and closing in on the company’s goal of a 14% return.