GSK Brazil

GlaxoSmithKline (GSK) is one of the largest and most profitable pharmaceutical companies in the world. This conglomerate is the product of multiple mergers of some of the leading companies in the industry. It was created in 2000 and at the time this case was written, had a market capitalization of $193.5 billion. The company’s most recent focus is on emerging markets, vaccines and consumer healthcare. When Sir Andrew Witty took over as CEO in 2008, he implemented a significant restructuring program in which GSK reduced its sales force in Europe and the United States, and reallocated research spending from depression and pain to Alzheimer’s disease, multiple sclerosis, Parkinson’s disease and vaccines. Although GSK was slightly ahead of its contemporary competitors due to having gained FDA approval for 16 drugs and vaccines in the previous three years, the company still faced several daunting challenges: upcoming patent expirations and pricing pressure from governments to name a few. The company utilized various pricing and sales methods depending on whether it was in an emerging market, one of the least developed countries (LDC) or a middle income country. Emerging markets were defined as being countries other than the United States, Western Europe, Canada, Japan, Australia and New Zealand. For GSK, these emerging markets were the main catalyst for 15% of sales being generated by vaccine sales in 2011 with an average annual growth of 18% growth since 2005. The company’s analysts recognized that vaccine sales in countries with significant unmet medical needs were critical to public health as well as the company’s future, especially considering the fact that prescription drug sales in Europe and North America were expected to level off or decline. GSK utilized vaccine innovations and global access to provide low-cost solutions to public health dilemmas in developing countries and as such was doing its part to assist in the United Nations’ Millennium Development