New GlaxoSmithKline CEO Picks London for Home Base

Research Triangle Park, N.C. — Andrew Witty, who takes over as the chief executive officer at pharmaceutical giant GlaxoSmithKline in May, is already shaking things up at the company.

Witty will base his operations in London rather than the United States, the Times of London reported on Sunday.

It’s the first time since GSK was formed in 2001 that the firm’s CEO will operate from London rather than Philadelphia, the newspaper said.

GSK has two U.S. headquarters, one in Philadelphia and the other in Research Triangle Park.

Witty recently prevailed in a three-way competition to take over as GSK’s top exec.

A company spokesman told the London newspaper that there would be no significant relocation of staff or resources to London. He cited family reasons as one of Witty’s concerns in deciding to be based in London.

David Stout, one of the executives Witty beat out for the CEO job, is leaving the firm next month. Chris Viehbacher, who is based in RTP and is the other executive in the three-way battle, will remain with the firm. He is president of the U.S. pharmaceutical business at GSK.

“GSK’s decision to shift its focus reflects growing expectations that the U.S. will be a less lucrative market for big medicine-makers over the next few years because of increased industry regulation,” the Times said. “Big drug companies are likely to expand in other regions, such as Asia-Pacific.”