Analysts urge P&G to stick to strengths

Procter & Gamble’s (P&G) decision to pull the plug on its prescription drug research programme shows that specialist functions are best left to specialists, according to industry analysts.

Procter & Gamble’s (P&G) decision to pull the plug on its prescription drug research programme shows that specialist functions are best left to specialists, according to industry analysts.

Experts say that the US consumer goods giant is increasingly recognising that it should concentrate on what it does best, which is marketing, and acquire health care products at a later stage in development.

Serena Jian, over-the-counter medicines analyst at Euromonitor, says: “The job cuts from its pharmaceuticals unit at this time strengthen P&G’s strategy of shifting from research and development towards licensing and buying.”

Jian’s comments follow P&G’s announcement earlier this week that it is to axe 300 pharmaceutical R&D jobs at the $500m (&£285m) health care research facility in Mason, Ohio, that it opened ten years ago.The centre has been renamed the Mason Business centre, which has also raised questions about whether P&G will stay in healthcare. Its only billion-dollar drug is the osteoporosis drug Actonel and sales have been declining since GlaxoSmithKline launched its alternative, Boniva, last year.

P&G says that it will stay in the sector.

Latest from Marketing Week

PLEASE SIGN IN OR REGISTER. IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and inspiration that will help you develop as a marketer and leader.

Register and receive the best content from the only title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work, so we can make Marketing Week more relevant to you.

Register now

THE BEST CONTENT

Our award winning editorial team and columnists will ask the biggest questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we will be your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Dedicated to developing your skills and helping you achieve marketing excellence. Find guidance on leadership, professional development and the latest industry jobs.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here