Developing and Broadening Specialists in Research & Development April 2012 Liz Fraser, Global Talent Business Leader, R&D

96,500 employees in over 100 countries GSK, the global company 96,500 employees in over 100 countries

GlaxoSmithKline We are a science-led global healthcare company that researches and develops innovative products. We have three primary areas of business: Pharmaceuticals, Vaccines and Consumer Healthcare. Our objective is to deliver sustainable growth across this portfolio. In 2011, our total turnover was £27.4 billion. Pharmaceuticals turnover £18.7bn Vaccines turnover £3.5bn Consumer turnover 5.2bn

R&D in GSK 11,000 people world wide Sites in UK, US, China and Singapore £3.9 billion invested in R&D in 2011 10-15 years to discover a new medicine with between £500-800m of investment- many failures along the way

Science and Leadership are not mutually exclusive Leadership in R&D Science and Leadership are not mutually exclusive

Career Paths in R&D The majority of people who join R&D are scientifically trained at least to graduate level and most to post graduate level Many will go into the research areas they studied in i.e. neuroscience, medicinal chemistry Chemists will go into a broad range of therapeutic areas Biologists will go into a narrow field of therapeutic speciality Over time they typically become deep experts in their chosen area of science and may lead a small research group Some move from drug discovery to clinical development and perhaps into more broader areas of drug safety or regulatory affairs Physicians due to their very structured training may join drug discovery, clinical development or medical affairs

Drug Discovery- 2000-2012 Drug discovery in GSK has seen many changes over the years and after the merger in 2000 a new way of working was developed and “Centre of Excellence for Drug Discovery( CEDDs)” were formed which were therapeutically aligned i.e. Respiratory CEDD, Neuroscience CEDD. Typically these were between 300-500 people at the time this was a novel way of working for the industry . The leaders were recognised experts in their field of scientific expertise In 2008 the first therapeutically aligned DPUs were formed, the aim behind this was to create more "biotech” like small units that were more agile and able to focus on the scientific areas of greatest need. This was a ground breaking way of working and GSK was taking the learning's of the biotech world and coupling it to the power of a large pharmaceutical company.

DPUs 36 DPU’s across therapeutic areas and geographies £500 million of investment Triennial business plan Typical skills in a DPU-Biology, chemistry and physicians The leader of a DPU needed different capabilities to that of a CEDD leader-being a recognised scientific leader was taken as a given; Externally focussed- Leader of the future Entrepreneurial Business focussed Talent Magnet

Developing DPU heads The DPU role is one that really creates the opportunity for in-depth scientists to develop as leaders in a strong science based area. We know that we employ only one in ten-thousand scientists in the world. Therefore a key part of the role is looking at the external world and building relationships and partnerships. The DPU business model is based on a a three year plan and therefore business acumen and developing the ability to deliver to the plan is a key part of the role The role really develops the scientific entrepreneur as there is not unlimited resource and the DPU head will need to be creative and innovative in their approach The DPU head has the overall accountability for the success of the group and therefore developing the people and culture is also critical to the success of the group

Clinical Development 2000-2012 After the merger in 2000 the large clinical development organisation was split into therapeutically aligned Medicine Development Centre’s (MDCs) and these groups were responsible for taking potential early discovery medicines into large scale clinical trials and through to registration Typically each potential medicine would have a number of different clinical teams working on it but there was not one leader looking at the overall progression of the medicine. In 2007 a new role was created, the Medicine Development Leader (MDL)

Medicine Development Leader The MDL role is a senior integrative leadership role with responsibility for managing the overall development of a medicine An MDL is appointed when a medicine is in its early development phase and brings together all the groups within the R&D organisation Discovery Clinical Regulatory Manufacturing Commercial The success criteria in this role requires: The ability to strike a balance between having a broad strategic overview and diving into the detail Highly developed interpersonal skills and credibility to marshal senior people from across GSK.

Developing MDLs The MDL role is a senior level role that requires the development of a “integrative leadership style “ This is the role in the R&D organisation that requires the skills that are most closely aligned to a General Manager as they have a core group of experts reporting to them and will rely on them for specific input without referring back to their line leaders MDLs are required to develop an in-depth knowledge of the medicine they are responsible for and be able to articulate a vision for its development They have to understand both the scientific and commercial value of the medicine

MDL and DPU Background MDL DPU Broad scientific /medical background In depth understanding of the overall medicine development process Broad leadership capability across the internal organisation In depth scientist focussed on a therapeutic area Knowledge of innovative drug discovery Strong scientific Leaders External knowledge and reputation

Leadership framework 70/20/10 Growing the ‘Agitators’ : Enterprise Leadership, Leading Business. CEO Forum Enterprise thinking Peripheral vision Paradox mgt Leadership v management development

The Impact on GSK The first three year period of the DPUs has just come to an end 30 assets in late stage development and 12 filings for 2012 The budget for overall R&D investment has remained constant at £3.9bn The success of the pipeline is also a critical attractant to key talent from competitors and a major selling point