Volatile drugs mix plays havoc with the emotions

The merger this week of pharmaceuticals giants Glaxo Wellcome and SmithKline Beecham stirred mixed emotions in Britain. The coming together just two years after a previous effort fell apart reportedly due to personality clashes at the top, sees two of the more historic names in British corporate history - Wellcome, founded in 1880, and Beecham, founded 40 years earlier - bite the dust.

More importantly for the present day, the merged Glaxo-SmithKline announced it would be moving its headquarters to the US, a bitter blow to the British government. The group cited commercial realities for the move, with the British market accounting for only 6 per cent of its business. Still, there is a lingering feeling that the British government's refusal to license Glaxo's Relenza flu drug might have undermined the loyalty of the alliance.