GlaxoSmithKline’s (GSK) president of pharmaceuticals is leaving the drugs giant after losing out on the chief executive role to Andrew Witty in October.

David Stout will leave GSK in February after joining the pre-merger SmithKline Beecham in 1996 before taking up his current role in 2003.

In contrast, Chris Viehbacher, who, alongside Mr Stout, was the other serious contender for the chief executive position, will take a seat on the company’s board on January 31.

The Sunday Times, The Times’ sister paper, recently reported that GSK offered both men £2 million retention packages and seats on the board to stay on at the group after losing out on the chief executive role. GSK told investors the shares will be handed out to Viehbacher and Stout over two to three years. There is also likely to be a small cash payment.

A spokeswoman for GSK told Reuters: “They were both very talented executives and we would have liked for both of them to have stayed.”

Mr Witty was announced as chief executive designate in October and will take over the role from Jean-Pierre Garnier in May next year.

Messrs Witty, Stout and Viehbacher openly competed for the past for two years before Mr Witty was named as Mr Garnier’s successor two months ago.

Mr Witty, who joined Glaxo UK in 1985, will take over at a testing time for one of Britain's biggest businesses.

Despite annual sales of £20 billion and one of the strongest drug pipelines in the industry, Glaxo is coming under severe pressure to end the furore over Avandia, the group's diabetes medicine and second-biggest selling product.

The drug has been linked to a significantly increased risk of heart attack.

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