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GSK Annual Report 2002

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20 GlaxoSmithKline Description of business<br />

In R&D the power of smaller units is manifest in the Centres of<br />

Excellence for Drug Discovery (CEDD). They ensure the most<br />

efficient and rapid validation of lead candidates through preclinical<br />

testing against proof of concept criteria, before handing over the<br />

compound to the New Product Development organisation for large<br />

scale clinical trials.<br />

The New Product Development function integrates the clinical,<br />

regulatory and commercial activities necessary to bring a new<br />

medicine to the marketplace. Similarly, the New Product Supply<br />

organisation bridges the traditional divide between development<br />

and manufacturing, ensuring that robust manufacturing processes<br />

are developed.<br />

Significant progress has also been made in the integration of the<br />

Group’s R&D in Japan with the global development and<br />

commercialisation processes in order to eliminate duplication and<br />

to speed up regulatory filings. During <strong>2002</strong> the discovery and<br />

development portfolio in Japan was reviewed and prioritised in the<br />

context of the global R&D pipeline.<br />

Crucial to the success of R&D is its capacity to embrace and<br />

develop new technologies to streamline the drug discovery process.<br />

The technology development organisation keeps abreast of<br />

emerging technologies that may advance the creation of new<br />

medicines, evaluates them and provides the investment and<br />

knowledge required to develop selected technologies appropriately.<br />

As R&D generates and modifies technologies, it will not only focus<br />

them on the Group’s internal goals but also maximise the return on<br />

R&D assets through sales, spin-outs and out-licensing.<br />

Early research and the role of genetics<br />

The early stages of finding new medicines requires essentially two<br />

components; targets that can be shown to affect mechanisms of<br />

important pathological processes in human disease and<br />

compounds, typically small molecules but also including<br />

macromolecules, protein therapeutics and vaccines, able to<br />

modulate the behaviour of specific targets.<br />

As part of this target validation process, GlaxoSmithKline aims to<br />

identify the genes most relevant to common diseases with large<br />

unmet medical needs, such as asthma, non-insulin dependent<br />

diabetes, osteoarthritis, chronic obstructive pulmonary disease,<br />

early onset heart disease and Alzheimer’s disease. Many diseases<br />

arise through complex interactions between a number of gene<br />

variants and environmental factors, so the challenge involved is<br />

significant. Identifying the genes that predispose patients to a<br />

particular disease and understanding their role in its progression<br />

lead to finding new ways to intervene in these diseases.<br />

In <strong>2002</strong>, a programme to identify tractable targets that are<br />

genetically associated with human diseases of interest was<br />

initiated. This enables the validation of targets associated with<br />

these diseases prior to extensive investigation.<br />

The practical application of genetics has moved forward during<br />

the year. Several opportunities have been identified where<br />

knowledge of specific markers for efficacy or susceptibility to<br />

adverse events is enhancing the ability to focus development of<br />

new medicines on patients who will be most likely to benefit from<br />

them, ultimately providing reassurance to both the prescriber and<br />

the patient.<br />

Discovery research<br />

The purpose of Discovery Research (DR) is to identify lead<br />

compounds that may form the basis of drug discovery efforts in<br />

the CEDDs. Investment in DR is focused on improving productivity<br />

in both quality and quantity. In <strong>2002</strong>, R&D completed construction<br />

of new automation facilities at Tres Cantos, in Spain, and<br />

continued work on facilities at Upper Providence and Harlow.<br />

In parallel with the development of the ability to generate<br />

efficiently large numbers of high quality new compounds, there<br />

has been substantial progress in implementing methods to evaluate<br />

them using high throughput biology. This discipline, with its<br />

integration of knowledge from both animal and human biology,<br />

is starting to deliver highly predictive models to forecast efficacy<br />

of compounds and to extend understanding of human disease.<br />

Centres of Excellence for Drug Discovery<br />

The two crucial steps in converting lead compounds into drug<br />

candidates are (i) optimising the lead for potency, efficacy, safety<br />

and other intrinsic characteristics of the molecule, and (ii)<br />

demonstrating the validity of the therapeutic hypothesis through<br />

early clinical trials of the resulting candidate. The CEDDs are<br />

focused on specific disease areas and designed to be nimble and<br />

entrepreneurial with the range of skills and resources required to<br />

drive mid-stage development projects from lead optimisation<br />

through to their key decision-point, demonstration of proof of<br />

concept, before major investments are made to fund large-scale<br />

clinical trials.<br />

There are six CEDDs, three based in the USA and three in Europe:<br />

• Cardiovascular & Urogenital Diseases, centred in Upper<br />

Merion<br />

• Metabolic & Viral Diseases, centred in Research Triangle Park<br />

• Microbial, Musculoskeletal & Proliferative Diseases, including<br />

cancer, centred in Upper Providence<br />

• Neurology, centred in Harlow (UK)<br />

• Psychiatry, centred in Verona (Italy)<br />

• Respiratory and Inflammation, centred in Stevenage (UK).<br />

Each CEDD is responsible for identifying the optimal drug<br />

candidate for the desired biological effect and then assessing its<br />

safety and other development characteristics in preclinical screens.<br />

Once this is achieved, the CEDDs are responsible for proving that<br />

the compound is safe and efficacious in patients in small-scale<br />

clinical trials – the proof of concept decision point.<br />

A decision is then made on whether the information available to<br />

date justifies the compound’s progression into late-stage drug<br />

development where the necessary large-scale clinical trials are<br />

conducted to register and commercialise the product.<br />

In <strong>2002</strong>, the CEDDs progressed significantly more compounds<br />

through both first dosing in humans and initial evaluation of<br />

efficacy in patients than in 2001. See table of compounds<br />

progressed into Phase I on page 18. In order to progress highly<br />

promising medicines yet more rapidly without compromising safety,<br />

selected projects are currently piloting a process that involves<br />

running some activities in parallel, rather than sequentially.

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