Tom McKillop rubbishes GSK merger

AstraZeneca's outgoing ceo Tom McKillop has rejected the idea that the company might merge with GlaxoSmithKline, saying it had no reason to enter merger talks.

Speaking at the European Society of Cardiology congress in Stockholm, Sweden on 5 September, McKillop said: 'we have no strategic need to be bigger, none at all. So there is no reason to engage in major M&A activity'.

Speculation that AZ might sell out to GSK was fuelled in July by news that McKillop was stepping down at the end of 2005 in favour of insider David Brennan, the group's head of US operations, with some industry analysts suggesting that his exit could ease any merger process.

Any potential merger would match the creation of French company Sanofi-Aventis last year, and would give GSK better access to cardiovascular and cancer markets.

McKillop went on to say that AZ remained focused on internally generated growth, but realised that recent pipeline setbacks meant it could be more open to licensing in drugs from other firms than in the past, if it makes 'economic sense'.

He also reported that the company is still on track to file its Symbicort asthma drug for approval in the US by the end of this month. The inhaled medicine, which competes with GSK's Advair, hit worldwide sales of US$800m in 2004, while Advair, which is also sold as Seretide, reached £2.5bn (US$4.6bn). Both drugs combine bronchodilators for short-term asthma relief with corticosteroids to treat inflammation. AZ's medicine uses an adjustable dosing regimen, controlled by the patient, while Advair is given at fixed doses.