SWOT analysis of the Glaxosmithkline.
Glaxosmithkline is, after Pfizer Inc, the largest pharmaceutical company in the world. It was formed in 2000 as the result of a merger between two large companies GlaxoWellcome and SmithKlineBeecham. The company operates primarily in 117 countries, their products are currently manufactured in 37 and are sold in over 140 countries. It is headquartered in Brentford, England and employs about 110,000 people with sales of Ł22.7bn. Their strategies for the future are: qrow a diversified global business, deliver more products of value, simplify the operating model. Putting these plans into action they want to contribute to their challenging and inspiring mission – enabling people to do more, feel better and live longer. (Gsk. 2009).
Let start SWOT analysis of Glaxosmithkline from strengths. First of all the company has got many well-known brands and top world products like smoking cessation product NiQuitin CQ as well as many medicine staples, including Panadol, Zantac, Zovirax, Augmentin, Solpadeine, Aquafresh and Sensodyne. GSK’s Nutritional Healthcare arm encompasses the notorious drinks brands Lucozade, Ribena and Horlicks (Gsk. 2009). Another good side of the firm is excellent turnover and profit. The total turnover in 2007 was over Ł22bn and in 2008 was almost Ł25bn. Annual operating profit is around Ł 7bn every year (Gsk. 2009). GSK is the top resarch company, spend around £3 billion on researching and developing treatments. GlaxoSmithKline has created a dedicated R&D group to focus on diseases of the developing world (DDW), specifically malaria and TB, with a DDW drug discovery centre at its Tres Cantos R&D site in Spain and clinical development experts in the UK and US (Ifpma. 2009). They initially discovered and developed the first anti-HIV drug approved for use, the reverse transcriptase inhibitor azidothymidine AZT (Pharmaprojects. 2009). GSK is working with WHO (World Health Organization) and NHS in England. They are also involved at the highest level of healthcare policy development through interaction with NICE, involvement in the NSF programmes, and the Pharmaceutical Industry Competitive Taskforce (sovereign-publications. 2009).
The drug business depends heavily on the strength of its patents, which grant exclusive rights to market branded products for years at a time. The major weaknesses for GSK is that its drugs are nearing or already patent expiration. GlaxoSmithKline has obtained patents in many countries for the significant products discovered or developed throughout its R&D activities. The expire of patents will lend to huge decline in profit becouse another companies will be able to copy developed by GSK products legally and make profits on it. GlaxoSmithKline and Pfizer plan to merge their HIV drug divisions in an unusual move designed to shore up their poor market positions. The marriage will create a new company, yet to be named, which will use the existing research and market portfolios of the parent companies to develop new combination drugs, the mainstay of HIV treatment (Nature news. 2009). The fakt that GSK needs a partner shows unstable position of the company and can limit global presence. GSK has strong focus on United States and Europe market thereby lose the opportunity to expansion in other developed countries. They need to increase sales coverage to find new client and develope many new products becouse at the moment they do not have enought market to keep their power on the stable position.
The table below sets out patent expiry dates for the active ingredients in significant GlaxoSmithKline products.
Basic compound patents have expired. Formulation patents will expire during or after 2013
During or after 2003 (USA 2006/8)
During or after 2010
During or after 2005
During or after 2007
Basic compound patents have expired. Formulation patents will expire...
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