Glaxo revives with new hire

Barron will define new technologies to develop breakthrough drugs

LONDON: GlaxoSmithKline Plc sold its portfolio of cancer therapies almost three years ago. The drug giant’s new head of research and development looks set to rebuild.

Hal Barron, who takes over in January, spent 17 years at San Francisco-based biotech firm Genentech and its parent Roche Holding AG, leading the development of a string of blockbuster tumor treatments that are projected to generate almost US$14bil in combined sales this year for the world’s biggest maker of cancer drugs.

Now Barron will define Glaxo’s ambitions in cancer and tap new technologies to develop breakthrough drugs. A doctor with deep Silicon Valley connections, he will be critical in pushing forward chief executive officer Emma Walmsley’s agenda of shaking up the labs at the UK’s largest drugmaker, which is seen as a laggard in delivering cutting-edge medicines.

“This is an opportunity for them to get back into oncology,” Mondher Mahjoubi, a former Roche executive who worked with Barron at the Swiss behemoth, said in an interview. “Hal is someone who can make a difference.”

Barron, who declined to be interviewed, starts at a crucial juncture for Glaxo: the drugmaker this year ranked No. 11 among 13 large pharma companies in a Bloomberg Intelligence analysis measuring R&D returns. The stock has also tumbled 16% so far in 2017 as investors grew concerned about the company’s ability to rejuvenate the pipeline of medicines and fund its dividend.

Hiring Barron is the latest demonstration of Walmsley’s focus on changing that perception since she took the helm in April. A key area has been revamping the management team as she brings in new talent from diverse backgrounds tasked with making Glaxo more competitive.

For instance, Walmsley poached Luke Miels from closest rival AstraZeneca Plc, an audacious move that triggered an employment dispute but eventually led to him taking over as the new pharma head in September.

She also turned to Karenann Terrell, a former executive at retailer Wal-Mart Stores Inc, to fill the newly created role of digital and technology chief.

As Glaxo’s top scientist, Barron will help prepare for the “next wave of growth” and use technology to make the company more efficient, according to Walmsley. His priorities, she said in an interview, would be “the pipeline, the pipeline and the pipeline.”