GlaxoSmithKline company profile
Amsterdam, October 2004
GlaxoSmithKline (GSK) is one of the world’s largest research-based pharmaceutical corporations that discovers, develops, manufactures and markets branded human health products. Headquarters: UK, with additional operational headquarters in the USA Global presence: about 160 countries Primary markets: USA, France, Germany, UK, Italy and Japan Employees: approximately 103,000 GSK key figures for 2003 (in £ million) Sales 21,441 Materials and production costs 4,188 Marketing and administration 7,563 R&D expenditures 2,770 Operating income 6,920 Net profit 4,765 GSK has two main business divisions, pharmaceuticals and consumer healthcare. This profile deals with the pharmaceuticals division, which generates 85% of GSK’s sales. The five largest selling GSK products are Seretide/Advair for asthma and Chronic Obstructive Pulmonary Disease (COPD); Paxil/Seroxat and Wellbutrin, both antidepression drugs; Avandia/Avadamet for type 2 diabetes; and the antibiotic Augmentin. Each of these drugs generated above £800 million of sales in 2003. GSK produces a broad range of products of special importance to developing countries, including: Anti-malaria drugs Zentel (albendazole), for de-worming and the prevention of lymphatic filariasis Pentosam, against leishmaniasis Anti-retrovirals (ARVs) for the treatment of HIV/AIDS Tuberculosis drugs Vaccines for developing countries
Corporate Social Responsibility (CSR)
CSR refers to the responsibility of a company for the social, ecological and economic impacts of its operations. GSK follows a proactive and comprehensive CSR approach. In 2003, the company formally adopted a set of Corporate Responsibility Principles. The company is highly transparent about its CSR policies and has a clear governance structure on CSR. Reporting about CSR performance is still limited on some issues, such as employment practices and internal monitoring on compliance with the company’s Code of Conduct. Recent criticism concerning GSK’s CSR performance includes fraudulent patent manoeuvres, irresponsible drug promotion and tax evasion. GSK’s policy for access to medicines in poor countries is outlined in its 2001 publication Facing the Challenge. The company identifies three key areas in which it can make a valuable contribution: R&D for diseases in poor countries Sustainable preferential pricing Community investment GSK has provided voluntary licenses for the generic production of HIV/AIDS drugs in subSahara Africa and offers a considerable range of medicines and vaccines at preferential prices. Furthermore, GSK has a large R&D portfolio for diseases relevant to developing countries and is also committed to undertake R&D projects on which it does not expect a commercial return. Compared to other pharmaceutical companies, GSK has a comprehensive and progressive policy for access to medicines.
Global Public-Private Initiatives (GPPIs)
GPPIs bring together different partners to address health problems in poor countries. In each of the three areas mentioned above,
GlaxoSmithKline company profile
GSK is actively involved in GPPIs. It participates R&D partnerships to speed the development of tuberculosis and malaria drugs and various types of vaccines, including a dengue, malaria and rotavirus vaccine. The company is also a partner in two preferential pricing frameworks: Accelerating Access Initiatives (AAI) Global Alliance for Vaccines and Immunisation (GAVI) GPPIs for community investment include: Global Alliance for the Elimination of Lymphatic Filariasis (GAELF) GSK African Malaria Partnership (AMP) Each company participating in the AAI individually offers preferential prices for its anti-retrovirals. For the poorest countries, GSK sets a single not-for-profit price. As of December 2003, the number of HIV patients in Africa receiving ARVs provided by all AAI companies combined was only about...
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