GSK boss accuses UK government of blocking new drugs to save money

The chief executive of the UK’s largest pharmaceutical company, GlaxoSmithKline (LSE: GSK) has accused the government of "systematically delaying" the release of new drugs – particularly those for treating cancer - to try to save money.

Sir Andrew Witty said on the public broadcaster BBC Radio 4 on Saturday that it is a problem across Europe as governments cope with austerity. But he argues that it is short-sighted and will ultimately be counterproductive. He told the BBC Today program that the governments had already cut drug prices by 5% a year - costing GSK around £300 million ($474 million) per annum.

He admitted: "If you are a minister and you need to cut costs, it is a lot easier to cut drug prices than it is to close a hospital or reduce the size of the Civil Service. I understand that.”