....................................................................... 1 HIV / AIDS in Africa ................................................................................................................... 1 Core interest of GSK in Africa .................................................................................................... 1 Criticism of GSK ......................................................................................................................... 1 Access to Medicine (ATM) Outlook ............................................................................................ 2 Governance .................................................................................................................................... 2 Management Structures....................................................................................................... 3 Performance Management & Incentives ............................................................................. 3 Stakeholder Engagement..................................................................................................... 4 Innovation in General Access to Medicine Management .......................................................... 4 Pricing Policies adopted by GSK ................................................................................................. 5 Tiered (or equitable) Pricing Schemes ................................................................................ 6 Patents...
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...avoid actions that reduce the ability of the interested parties, including the future generations to meet their needs. In order to elaborate, how a leading global organization takes Sustainable Supply Chain Management as a strategic goal, we have prepared our report on GSK’s Sustainability elements. GSK is one of the world’s leading research-based pharmaceutical and healthcare companies, developing and supplying medicines to a huge global market. The company employs more than 97,000 people in over 100 countries and has an extensive worldwide supply chain. GSK’s mission is to help people do more, feel better, live longer. They do this through investing in R&D, adopting flexible approaches to pricing, promoting open innovation, and strengthening healthcare systems. By growing their business and extending access to their medicines, GSK ensures long term commercial success as well as creating value for its shareholders and delivering economic benefits to the wider society. GSK contributes directly and indirectly to the economic growth in more than 150 countries through tax, charitable support and employment of 101,255 people around the world. This report reflects the actions taken up by GSK for achieving sustainability in their supply chain operations. GSK’S top 10 sustainability successes have also been highlighted in this report as to how they achieved the Carbon Trust Certification, reduced Carbon footprint,...
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...GlaxoSmithKline company profile Francis Weyzig Amsterdam, October 2004 Summary Business description 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...
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...1- Derive three opportunities and three threats for GSK by first making the PESTEL analysis of the macro-environment surrounding the pharmaceutical industry. (9 points) * PESTEL analysis of the pharmaceutical industry: Political: Since the creation of healthcare insurance, companies have to conform themselves to two kinds of systems: 1) The universal system applied for example in France, with less demand in new technologies. 2) The very selective anglo-saxon system which is looking for high technologies, excluding people who can pay for treatments. As we know the industry have to work on growing political focus on healthcare. Indeed, global governments are looking for healthcare savings especially in this time of economic crisis. Furthermore, as the European Union is trying to harmonize healthcare between its 27 members, pharmaceutical companies will have to introduce reference in pricing and to deal with increasing pressure on pricing. Economic: Due to the context of global economic crisis, the main threat for the industry stands in the reluctance of consumers to spend on healthcare. Like most of the sectors, pharmaceutical industry copes with a reduction in its growth, even if the market perspectives are positive. To emphasize: pharmaceutical growth is following the GDP growth. Social: As the over-65’s consume 4 time more than other citizens, the aged population represents an opportunity for the pharmaceutical companies which will have to respond to increasing...
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...Mergers and Acquisitions Tasha Powers Dr. Michael Laverty Business 508 – Contemporary Business November 17, 2014 A merger or acquisition is a combination of two companies where one corporation is completely absorbed by another corporation. The less essential company loses its identity and becomes part of the more imperative corporation, which retains its identity. A merger extinguishes the merged corporation, and the surviving corporation assumes all the rights, privileges, and liabilities of the merged corporation (Gomes, 2011). A merger is not the same as a consolidation, in which two corporations lose their separate identities and unite to form a completely new corporation. Federal and state laws regulate mergers and acquisitions. Regulation is based on the concern that mergers inevitably eliminate competition between the merging firms (Helms, 1996). This concern is most delicate where the participants are direct rivals, because courts often presume that such arrangements are more prone to restrict output and to increase prices. The fear that mergers and acquisitions reduce competition has meant that the government carefully scrutinizes proposed mergers. On the other hand, since the 1980s, the federal government has become less aggressive in seeking the prevention of mergers (Gomes, 2011). Mergers appear in three forms, based on the competitive relationships between the merging parties. In a horizontal...
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...APPENDIX A - PORTERS 5 FORCES Barriers to Entry • Entering of the potential industrialists is easy, if they have the necessary finances, because the cost of obtaining the permit and start operations is very high. However, there is stiff competition among the companies, especially with the pharmaceuticals, which have not only expanded their scope of operations and distribution through mergers and acquisitions, but also have the necessary know how and long experience to combat any new entrant. • The lengthy and cumbersome registration process, spanning up to two years or more, whereby the new companies have to provide the Certificates of Free Sale, (which confirms the approval for the sale of products in US, Europe, Japan etc) ensure the sale of product in the parent company (incase of MNC) and live up to other irrational clauses in the registration form, inhibit the companies from entering. • The pharmaceutical industry is a very capital intensive industry. This requires large amount of investment, and since, we lag behind in the capital industry, and it has to be imported. Thus, limiting new entrants. • With no stress and emphasis on research and development in our country, it is most likely that the new entrants will produce a new form of the generic type, already being produced in abundance. Thus, the absence of any differential advantage over their competitors will further reduce their chances of survival in the industry. • The risk aversive nature of the industrialists...
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...A “Calibrated Approach”: Pharmaceutical FDI and the Evolution of Indian Patent Law Web version: August 2007 Authors: Katherine Connor Linton and Nicholas Corrado1 Abstract India has charted its own intellectual property (IP) path over the last 35 years, attempting to foster the growth of a domestic pharmaceutical industry and access to medicine while, more recently, also addressing the requirements of the international IP regime. Multinational companies (MNCs) have responded to India’s movement towards compliance with the W TO intellectual property agreement, TRIPS, by increasing the quantity and quality of foreign direct investment (FDI) in the areas of pharmaceutical research and development (R&D) and manufacturing. By contrast, MNCs have adopted a more cautious attitude toward the patenting and commercialization of new pharmaceutical products in India, waiting to see how Indian courts and patent offices interpret the new laws, and awaiting the enactment of longdebated data protection legislation. The ultimate success of the Indian “calibrated approach” to fostering the domestic industry and access to medicine while also addressing international IP requirements remains to be seen. 1 Katherine Connor Linton (katherine.linton@usitc.gov) is the International Trade Analyst for Intellectual Property and Nicholas Corrado was a law student intern in the Office of Industries of the U.S. International Trade Commission (USITC). The views expressed are those of Ms. Linton and...
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...4. Egyptian Case Studies Azza El-Shinnawy and Heba Handoussa INTRODUCTION This chapter presents three cases of recent foreign investment in Egypt. In the case of the Egyptian Company for Mobile Services (MobiNil), an international consortium takes over a state-run mobile phone service, and modernises its operations in a rapidly growing and transforming market. The local partner subsequently becomes a regional player in Africa and the Middle East. Glaxo Smith Kline, a leading pharmaceutical firm, expands in Egypt through multiple acquisitions, while the parent firm itself is subject to M&A at a global level. The leading-brand ketchup manufacturer Heinz has established a production facility for the Middle East jointly with a Kuwaiti multinational specialising in being the local partner for foreign fast-food chains throughout the Arab countries. THE EGYPTIAN COMPANY FOR MOBILE SERVICES (MOBINIL) Introduction Mobile telephony is capturing an increasing share of global telecommunications services, accounting for 23 per cent of global telecommunications revenues (up from 3 per cent in 1990). Mobile telephony is one of the high growth market segments of the Egyptian telecommunications sector, having outpaced the growth of fixed-line telephony, which currently stands at 7.5 million lines, growing at a compound annual growth rate (CAGR) of approximately 14.6 per cent during the period 1995/2000, compared with the staggering CAGR of 169 per cent for mobile telephony...
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...Research and Analysis Project for B.sc (Hons) In Applied Accounting Business and Financial Performance Of GlaxoSmithKline Pakistan Ltd (2007- 2009) XXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXX Prepared by Faisal Saleem XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX Mentoring by Fahim Ahmed This project is prepared in accordance with Oxford Brookes University guidelines. Table of Contents Topic & Company selection------------------------------------------------------------------------------3 About GlaxoSmithKline------------------------------------------------------------------------------------4 Overview of the Pharmaceutical Industry-------------------------------------------------------------5 Research Aims and Objectives--------------------------------------------------------------------------7 Information Gathering--------------------------------------------------------------------------------------8 Techniques used in RAP--------------------------------------------------------------------------------10 Limitations in RAP and Ethical issues----------------------------------------------------------------11 Financial Analysis-----------------------------------------------------------------------------------------12 Revenue trend Analysis----------------------------------------------------------------------------------12 Profitability and...
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...“The Indian pharmaceutical industry is a success story providing employment for millions and ensuring that essential drugs at affordable prices are available to the vast population of this sub-continent.” Richard Gerster The Indian Pharmaceutical Industry today is in the front rank of India’s science-based industries with wide ranging capabilities in the complex field of drug manufacture and technology. It ranks very high in the third world, in terms of technology, quality and range of medicines manufactured. From simple headache pills to sophisticated antibiotics and complex cardiac compounds, almost every type of medicine is now made indigenously. Playing a key role in promoting and sustaining development in the vital field of medicines, Indian Pharma Industry boasts of quality producers and many units approved by regulatory authorities in USA and UK. International companies associated with this sector have stimulated, assisted and spearheaded this dynamic development in the past 53 years and helped to put India on the pharmaceutical map of the world. Growth Scenario in 2010 India's pharmaceutical industry is now the third largest in the world in terms of volume. Its rank is 14th in terms of value. Between September 2008 and September 2009, the total turnover of India's pharmaceuticals industry was US$ 21.04 billion. The domestic market was worth US$ 12.26 billion. This was reported by the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers. As per...
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...Merck’s Business Environment MNGT/521 University of Phoenix November 7, 2011 Kevin Wilhelmsen Merck’s Business Environment There are many factors a business, such as Merck, must have in order to be successful, for example strong financial statements, leading technology, and globalization. With the help of income statements, balance sheets, and cash flow statements, a financial analysis can be applied in a wide variety of situations to give business managers the information they need to make critical decisions (Financial Analysis, 2010). They also provide information in regards to the financial health of a company. Pharmaceutical companies are using technology to conduct clinical trials, which has proven to be beneficial to research, development, and the introduction of new products. Globalization is also important for Merck when it comes to product distribution. Outsourcing was been adopted by Merck in order to produce equal quality vaccines and medications at a cheaper cost. Review of Finances Analyzing a company’s income statement, balance sheet, and cash flow is a prime way in determining their success. A comparison can be made between the competition in the industry and a leader can be established. An analysis can also show which company is spending more on research and development and in turn, producing better products. After review of the income statements, Merck’s worldwide sales were $12 billion...
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...Instructor’s Manual CASE TEACHING NOTES The Global Pharmaceutical Industry Sarah Holland (Manchester Business School) and Bernardo Bátiz-Lazo (London South Bank University) 1. Introduction The case describes how the prescription pharmaceutical industry has changed since its modern beginnings in the early 1950s. The various forces affecting the competitive environment of the industry are discussed in terms of origins, immediate past and immediate future (2004 onwards). As a result, the note provides insights into the evolution of barriers to enter and exit the industry for prescription pharmaceuticals, while aiming to help students to recognise how to set boundaries for an industry. This is a detailed industry note on the “ethical” pharmaceutical industry which provides an opportunity to analyse key success factors of major players. The note centres on a descriptive overview of the predominant issues in the three major Triad market areas: the US, Europe and Japan (although major issues in emerging markets are also mentioned). The note covers the overall industry environment with in-depth discussion of the driving forces in the industry such as globalisation (in particular global regulatory issues, changing world demographics and worldwide pricing disparities); development of new technology; the importance of time to market; and amalgamations. The case also examines issues around corporate social responsibility. 2. Position of the Case The pharmaceutical industry...
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...Pharmaceuticals and Life Sciences Global pharma looks to India: Prospects for growth Table of contents Introduction 03 Background 04 A fast growing economy An expanding pharmaceutical market Government-provided healthcare improving, but private healthcare dominates Domestic market overview 09 Background Consolidation underway, despite challenges Contract manufacturing Vaccines Over the counter market holds significant potential Reaching the untapped rural market Growing Research & Development 15 Overview Clinical trials Biotech and biosimilars on track for growth Other growth areas Bioinformatics 20 Stem cell research Medical devices Global Pharma’s evolving business models and options in India 23 Background Export-oriented business (Contract Research and Manufacturing Services) Licensing Franchising Joint ventures Wholly-owned subsidiaries Practical concerns 27 Infrastructure Tax environment Counterfeiting Intellectual property Conclusion 30 Related reading: Pharma 2020 31 References 32 Acronyms 38 Introduction The pharmaceutical industry’s main markets are under serious pressure. North America, Europe and Japan jointly account for 82% of audited and unaudited drug sales; total sales reached US$773 billion in 2008, according to IMS Health. Annual growth in the European Union (EU) has slowed to 5.8%, and sales are increasing at an even more sluggish rate...
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...1) Pharmaceutical Industry in India: India is the third largest pharmaceutical market in the world in terms of volume. The market is believed to grow at a compound annual growth rage (CAGR) of 14-17 percent in between 2012-16. There has also been a considerable growth in the levels of pharmaceutical exports from India. The industry started picking momentum in the early 1960s, with government actively encouraging the sector with the Patents Act. However, the liberalization of 1991 enabled the industry to become what it is today. Many of the Indian companies principally observe reverse engineering of the new processes for manufacturing drugs at low costs. Although some of the companies have taken baby steps towards innovating newer drugs, the industry as a whole tends to follow this business model. The lack of patent protection, on the other hand, makes India undesirable for multinational companies that have dominated the market. So the pharmaceutical market in India has a tremendous potential for indigenousness. In this context, comparing a global pharmaceutical company with its Indian counterpart becomes evident. GlaxoSmithKline and Ranbaxy: A Comparison GlaxoSmithKline is a British multinational pharmaceutical company also dealing in biologics, vaccines and consumer healthcare. Headquartered at London, it is the world’s sixth largest pharmaceutical company. The company was established in 2000 by the merger of Glaxo Wellcome and SmithKline Beckman Corporation. A giant...
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...INDIAN MARKET Due to poor sanitation conditions, infectious (acute) diseases are predominant in India. However, the incidence of chronic ailments, characterised by prolonged exposure, has been increasing with the emergence of lifestyle diseases in India, due to changing work pattern of the working population, higher stress levels, and unhealthy eating habits. Key issues answered through this analysis: What are acute and chronic ailments? What is the proportion of drugs for each segment in the total domestic formulations market? How have various therapeutic categories in the domestic formulation market performed over the last three years? Publish Date: 15-Jul-2013 | | Majority of ailments in India are more acute than chronic in nature Types of ailments Source: CRISIL Research Ailments can be classified into acute and chronic. Acute ailments are characterised by sudden, severe exposure (usually a single, large exposure) and rapid onset of the disease. The patient shows intense symptoms for a brief duration (not longer than 30 days). Infectious diseases such as common cold, fever, etc are some examples of acute ailments. However, some acute ailments may turn chronic if left unaddressed. Chronic ailments are characterised by prolonged or repeated exposures over many days, months or years. Chronic diseases can only be alleviated through treatments, but not fully cured. Unlike acute ailments, they do not usually resolve on their own accord. Examples of...
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