Significant new R&D Investment at GlaxoSmithKline, Cork

Tánaiste and Minister for Enterprise, Trade and Employment, Mary Harney T.D., announced today (Thursday, July 10, 2003) that GlaxoSmithKline(GSK), the second largest pharmaceutical company in the world, is to invest a total of almost €7 million, with the support of IDA Ireland, in establishing a new R&D Laboratory at its Primary Pharmaceuticals facility at Currabinny, Carrigaline, Co. Cork. The Laboratory will create job opportunities for 10 high-calibre graduates/post graduates who will carry out research into the physical properties of Active Pharmaceutical Ingredients and the reformulation of HIV products.

The Tánaiste, welcoming the decision, said, "This investment is a further endorsement of the Irish facility which has seen considerable development and expansion since it was established in 1974. The plant is a strategic global New Product Introduction site within GSK's manufacturing network and is currently the sole production site for a number of the Group's top selling drugs such as `Seroxat', which is an anti-depressant, `Avandia' which addresses Type 2 Diabetes and `Coreg' which treats serious heart conditions."

The Tánaiste highlighted the fact that "the Irish management team fought hard for this new R&D function and are to be congratulated on their success." In increasingly sophisticated medicines, the physical properties of the active ingredients have a huge impact on the delivery performance of the medicine to the patient. The research at the Cork facility will increase the understanding of characteristics of the ingredients, such as particle size, distribution, ability to flow and cohesiveness.

"The investment will increase the strategic importance of the Cork facility within the GSK group and will position it strongly to compete for future new investments. It is expected to result in significant collaborate research between the Cork facility and the new School of Pharmacy at University College Cork. It is an excellent example of the high-calibre innovative investments that IDA Ireland is winning from global companies in its work to assist their Irish operations to move higher up the value chain," she added.

Mr. Finbar Whyte, Managing Director of GlaxoSmithKline at Currabinny, said that the decision was a major vote of confidence in the operation and reflected the greatest credit on all employees. "The deciding factors in the choice of Cork for this investment were the work of the existing R&D team at Cork, the commitment of all the workforce and the support provided by the Irish Government through IDA Ireland. We have made major investments in this facility since we were first established and to-day's announcement is again highly significant both within GSK worldwide and for the pharmaceutical industry in Ireland", said Mr. Whyte.

Notes For Editor

About GSK

GSK employs a total of over 1,400 people in Ireland, including more than 400 at the Cork facility. It has manufacturing and R&D facilities in Cork and in Dungarvan, Co. Waterford, and sales and marketing functions in Dublin. The Cork facility was established to manufacture Primary Active Pharmaceutical Products and has recently completed a €225 million facilities investment programme which included a new state-of-the-art Chemical Development R&D Pilot Plant and Laboratory.

GSK is second largest pharmaceutical company in the world and has a leadership position in three major therapeutic areas - anti-infective nervous system, respiratory system and central nervous system. It employs over 100,000 people worldwide and has an extensive global sales and marketing network, with products being supplied by over 95 sites in 38 countries. It had a turnover of €33 billion, with a profit of €10 billion in 2002 and an expenditure on R&D of approximately €4 billion.

GlaxoSmithKline, one of the world's leading research-based pharmaceutical and health care companies, is committed to improving the quality of human life by enabling people to do more, feel better and live longer.

ENDS