GlaxoSmithKline said today it is "completely focused" on organic growth and ruled itself out of any M&A activity in the near future, as it concentrates on bringing its pipeline of new drugs to market.
Chief executive Mr Jean-Pierre Garnier told reporters on a conference call after the 2003 results that his first priority is to focus on maturing Glaxo's pipeline and turning it into late stage pipeline.
"It is very important for us to stay focused on making that bet pay off, the opportunity is too good to be missed because of the distraction of a large scale transaction," Mr Garnier said.
He said that in 2004, Glaxo will "change dramatically".
By the fourth quarter of 2004, Glaxo expects to resume EPS growth, as its exposure to generics will be "greatly diminished", and its late-stage product portfolio will be greatly increased.
R&D spend will rise to "mid-high single digit" pct in 2004, above current consensus.
Mr Garnier said that although "you can never close the door completely," it would be distracting to engage in any merger activity at the moment.
"We have a unique opportunity at GSK, if you look at the depth and the innovation index of our portfolio of new drugs, most observers would agree that this is the most promising pipeline in the industry."