The Long Cycle of Pharma R&D
To all the people who are dismissing @emma Walmsley’s tenure and track record at GSK, with a flat stock price and a big revenue dip in 2020, I’d like to remind them of the terribly long cycle of value in big pharma, vividly expressed in @alph bingham’s refreshing 2006 article on the structure pharma (Whither Pharma, Drug Discovery World Summer 2006).
Yes, a 2006 article showing how decisions made 40 years ago impact today’s late-stage pipeline. The CEO in charge then is long retired (Sir Paul passed away in 2023) and praised for overseeing the merger of Glaxo with SmithKline and rapid growth. Emma Walmsley is credited with bold strategic decisions and cultural transformation but evaluated against a difficult market environment and legacy issues from before her leadership began. She probably set the stage for a much better future. In this industry, the past, if not destiny is definitely highly constraining.
Of course, the opposite can also happen: a competent CEO inheriting what would become a great pipeline and the right culture.