TROUBLED British Biotech has announced the replacement of its chief executive Dr Keith McCullagh with a drugs research and marketing expert from SmithKline Beecham.

Canadian-born Dr Elliot Goldstein, senior vice president and director of worldwide strategic product development at SmithKline, will take over the role when Dr McCullagh retires at the end of September.

Dr Goldstein will also take over the role of commercial director from Dr Pam Kirby, who will step down at the same time.

He will be charged with the task of renewing investors' confidence in the company which has been hit by allegations of misleading shareholders.

The controversy, in which British Biotech was accused of giving over-optimistic progress reports on its research drugs, rocked confidence in the whole sector.

MPs said biotechnology companies should have an independent watchdog with sweeping powers to monitor Britain's companies.

Dr Goldstein said: "British Biotech has a strong pipeline of potential drugs, innovative research programmes and a talented staff with the wide skills and experience needed to build the company successfully. I look forward to joining the company and to the opportunity to create long term value."

Trained as a geneticist, he qualified as a doctor in France and joined the pharmaceutical industry in 1980.

For the last 18 years he has worked in the clinical development and marketing of new drugs.

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