Hundreds of research and development jobs in the UK will shift to GlaxoSmithKline as Europe’s biggest pharmaceuticals company stops researching anti-depressant medicines a pivotal part of its historical neuroscience activity, to save £500m a year in costs by 2012. Andrew Witty , chief executive revealed about an 18 per cent rise in full-year pre-tax profits to £7.9bn on sales up 16 per cent to £28.4bn in the 12 months to December 31.

GSK yesterday became the first pharmaceutical company to disclose a measure of productivity in R&D. The estimated return on investment had risen in recent years from an industry average of 7 per cent to 11 per cent, with a future "aspiration" of 14 per cent.

AstraZeneca is to cut 8,000 jobs worldwide and will outsource more of its research and development. Andrew Witty, chief executive, said, “We are making sure that we are spending money where we have the best chance of returns. These are the areas which are most expensive and where there is highest risk.” He added that the recent introduction of a “patent box” by the Government had led to GSK investing more in manufacturing in the UK for the first time in 20 years. Shares in GSK rose by 1 per cent to £12.26.