8/13/2019 GSK on addressing AIDS issue in African countries
1/20
GlaxoSmithKline and AIDS Drugs for Africa
Presented by (Group 4) :
Nakul Agarwal (D004), Sanket Guhagarkar(D020),Tanvi
Gupta(D026),Piyush Jain(D029), Saurabh Jain(D030)
8/13/2019 GSK on addressing AIDS issue in African countries
2/20
Overview of GlaxoSmithKline
GlaxoSmithKline (GSK) British Multinational pharmaceutical, biologics, vaccines
and consumer healthcare company:
Worlds fourth largest pharmaceutical company
Established in 2000 by the merger of Glaxo Wellcome plc and SmithKline
Beecham plc
8/13/2019 GSK on addressing AIDS issue in African countries
3/20
Mission
7% of total global pharmaceutical sales
Total company sales: 21.2 bn / $31.8 bn
Our International Region covers 80% of the worlds population
GSKs mission is to improve the quality of human life by enabling people to do
more, feel better and live longer
8/13/2019 GSK on addressing AIDS issue in African countries
4/20
GlaxoSmithKline (GSK) operates in three primary areas of business: Pharmaceuticals, which includes prescription pharmaceuticals
Vaccines; which includes developing preventive vaccines for major diseases
Consumer Healthcare; which includes oral health, nutrition, wellness, and skin
health consumer health products
GSK is the only company in the world that holds the patents over the drugs used
for HIV/AIDS treatment
In 2009, GSK (85 %) partnered with Pfizer(15%) to institute a global specialist HIV
company ViiV Healthcarewhich is a dedicated to delivering advances in
treatment and care for people living with HIV.
Primary Areas of Business
8/13/2019 GSK on addressing AIDS issue in African countries
5/20
8/13/2019 GSK on addressing AIDS issue in African countries
6/20
HIV / AIDS in Africa
Major public health concern
Sub-Saharan Africa alone account for
an estimated 69% of all people living with
HIV and 70% of all AIDS deaths in 2011
Southern Africa worst affected regionon the continent
8/13/2019 GSK on addressing AIDS issue in African countries
7/20
Core Interest of GSK in Africa
Huge opportunity for GSK s HIV / AIDS drugs as more than 25 million people were
infected with HIV causing virus in 2001
Developed countries accounted for 90% of the sales
Criticism
Glaxo has been criticized by human rights and shareholder activists for not doing enough
to make available HIV / AIDS drugs to people in Africa
8/13/2019 GSK on addressing AIDS issue in African countries
8/20
Access To Medicine (ATM) Outlook
Developed a sustainable long-term approach to improve Access to Medicine (ATM).
Targets Index Diseases (IDs)
GSK has strengthened its flexibility in its approach to Intellectual Property relating to
neglected diseases and pricing
In the ATM Index 2010, GSK Ranked1st overall
Above average ATM Performance
Management system
Above average and diverse stake-Holder engagement for numerous
access initiatives
8/13/2019 GSK on addressing AIDS issue in African countries
9/20
Developing Countries and Market Access
(DCMA)
Aim : To improve access to GSKs HIV medicines to Lesser Developed
countries(LDCs) in Africa and Asia at an affordable price
Mission: `Bringing more affordable, quality GSK medicines and vaccines to patients
who need them in the worlds poorest countries.
GSK also has three corporate strategies comprising its Access to Medicine
Corporate Principle, as follows:
Pursuing flexible pricing strategies;
Refocusing R&D activities to reflect the needs of developing countries; and
Seeking innovative partnerships to try to reach people who would otherwisenot have access to medicines and vaccines.
8/13/2019 GSK on addressing AIDS issue in African countries
10/20
Governance: Performance Management
& Incentives
Focus on Volume Growth rather than Delivery of Profit
GSK instituted bonus schemes for its senior managers for effective delivery of
its initiatives that improve access to medicines in LDCs
GSK has instituted bonus schemes in its DCMA units to directly incentivize
managers who increase access to medicine
The rewards are based on volume growth rather than the delivery of profit
The company has also instituted a Presidents award scheme to formally
recognize examples of initiatives that improve access.
This also ensures sustainability, because though the medicines are made
available at a reduced price, the total number of customers are increased by
increasing its availability thus leading to equitable profits
8/13/2019 GSK on addressing AIDS issue in African countries
11/20
Stakeholder Engagement
Customers : Patients who need
Antiretroviral drugs and doctors whoprescribe them are primary stakeholders
GSK has the moral obligation to provide
the ingredients of each drug so that
Doctors can access the effectiveness of
particular drug
Core Stakeholders : They are scientists
who create effective drugs by dedicated
R & D and investors who invest in GSK
for funding these R & D projects
GSK should utilize these funds efficiently to create a value for their stakeholders
Society : Aids inflicted population of Sub saharan region. GSK should provide cheap
drugs and create awareness about health and hygiene
Business Partners : This includes Regulators and Distributors who help GSK ti effectively
spread the drugs to the concerned patients.
8/13/2019 GSK on addressing AIDS issue in African countries
12/20
Equitable Pricing, Manufacturing and
Distribution
Tiered (or equitable) Pricing schemes:
For HIV/AIDS medicines, GSK through ViiV Healthcare offers not-for-profit
prices in LDCs, in all of sub-Saharan Africa, and in all LICs
In middle-income countries, GSK has also introduced intra-country tiered
pricing, within markets, to reach new sectors of the population based on
assessing the patients ability to pay
GSK publicly discloses the proportion of its global revenues covered by tiered
pricing programs for HIV/AIDS medicines only
In LDCs where it is the sole supplier in that market, GSK caps the prices of its
patented medicine including (HIV/AIDS) and vaccines at not more than 25% of
prices in the UK, provided this price covers its manufacturing costs
8/13/2019 GSK on addressing AIDS issue in African countries
13/20
Positives from tiered pricing approach
Prices were reduced by an average of 45%. Sales volumes for the majority of
products have increased significantly following the price decreases, and GSK states
that this has increased access to these products to more patients.
The increased volume for these products in these markets shows that the business
model is sustainable and reflects the increased number of patients who now haveaccess to these branded products including HIV/AIDS drugs.
Equitable Pricing,Manufacturing and Distribution
8/13/2019 GSK on addressing AIDS issue in African countries
14/20
GSKs stand on Patents and Licensing
Public disclosure of pro-access position statements regarding TRIPS and
compulsory licensing
Although the company holds some patents in LDCs, it has made a commitment not
to enforce those patents
The company has issued 11 Non-Exclusive Voluntary Licenses (NEVLs) for ARVs for
producing HIV related drugs, in places where GSK does not have accessibility at the
moment
Patents and Licensing
8/13/2019 GSK on addressing AIDS issue in African countries
15/20
Trade Aspects of Patents:
Full respects towards TRIPS flexibilities
Patents not filed in Index Countries
Access-orientated IP/deal-making strategy for ICs
ViiV Healthcare has issued NEVLs to 12 generic companies for the manufacture
and supply of its regulatory approved products as follows
The licenses provide each generic manufacturer the option for the manufacture
and supply of ViiV Healthcare's entire antiretroviral portfolio for supply to all
LDCs, all LICs, and all countries in sub-Saharan Africa
Aspen Feza
Adcock Ingram Ranbaxy
Biotech Cosmos Universal Ltd
Cipla MedPro Universal Corp
Strides Specpharma
Emcure Aurobindo
8/13/2019 GSK on addressing AIDS issue in African countries
16/20
Support for Medical Patent Pool(MPP)
GSK has not yet shared any of its HIV drug molecules to MPP
However, GSK has entered formal negotiations with MPP through ViiV Healthcare
since Jan 2011, and since then has held several constructive meetings
8/13/2019 GSK on addressing AIDS issue in African countries
17/20
GSK and Millennium Development Goals
GSK has developed pediatric formulations in the form of Anti-Retrovirals (ARV) to treat
the children Embarked a global partnership with Save the Children to ensure that every childreceives essential healthcare and reduce mother-child HIV transmission
Reduce ChildMortality
GSKs R&D pipeline includes a Phase I biopharmaceutical and a Phase III asset
Votrient, both aimed at treating ovarian cancer, and also research is under way ontreatments for breast cancer
Improve MaternalHealth
GSK carries our drug donations in line with WHO guidelines on Product Donations
ViiV healthcare works exclusively on research, development and commercialization ofHIV treatments
Combat HIV /AIDS, malaria and
other diseases
Created a Green Chemistry Performance Unit to research ways to replace hazardouschemicals and processes with lower impact alternatives.
Ensureenvironmentalsustainability
GSK is working with various stakeholders to provide access to HIV/AIDS drugs in lesserdeveloped countries through tiered pricing and various partnerships
Develop a globalpartnership for
development
8/13/2019 GSK on addressing AIDS issue in African countries
18/20
Sustainable Philanthropy
In 2011, GSK reinvested approximately USD 6 million due to the companys commitment
to reinvest 20% of profits in LDCs
In 2010, GSK dedicated approximately USD 84 million in resources to philanthropic
projects in ICs, and approximately USD 54 million in 2011
In 2010, GSK started a skills-based volunteering initiative called PULSE that empowers
employees to make a sustainable difference for communities and patients in need
8/13/2019 GSK on addressing AIDS issue in African countries
19/20
Book References:
Anne T. Lawrence & James Weber (2010), Business and Society:Stakeholders, Ethics, Public policy (12th ed.). New York, NY, 10020
Webpages:
GSK, (2013), GSK Annual Summary 2012. Retrieved from
http://www.gsk.com/content/dam/gsk/globals/documents/pdf/GSK-Annual-
Summary-2012.pdfGSK, (2011), GSK on compulsory licenses, Retrieved from
http://www.gsk.com/content/dam/gsk/globals/documents/pdf/GSK-on-
compulsory-licences.pdf
GSK, (April 2011), GSK on IP and access to medicines in developing
countries, Retrieved from
http://www.gsk.com/content/dam/gsk/globals/documents/pdf/GSK-on-IP-and-access-to-medicines-in-developing-countries.pdf
Access to medicine index, August 2012, Company profile access to medicine
index 2012, Retrieved from
http://www.accesstomedicineindex.org/sites/www.accesstomedicineindex.org/file
s/company/downloads/company_profile_access_to_medicine_index_2012_03122
012_final_gsk.pdf
References
http://www.gsk.com/content/dam/gsk/globals/documents/pdf/GSK-Annual-Summary-2012.pdfhttp://www.gsk.com/content/dam/gsk/globals/documents/pdf/GSK-Annual-Summary-2012.pdfhttp://www.gsk.com/content/dam/gsk/globals/documents/pdf/GSK-on-compulsory-licences.pdfhttp://www.gsk.com/content/dam/gsk/globals/documents/pdf/GSK-on-compulsory-licences.pdfhttp://www.gsk.com/content/dam/gsk/globals/documents/pdf/GSK-on-IP-and-access-to-medicines-in-developing-countries.pdfhttp://www.gsk.com/content/dam/gsk/globals/documents/pdf/GSK-on-IP-and-access-to-medicines-in-developing-countries.pdfhttp://www.accesstomedicineindex.org/sites/www.accesstomedicineindex.org/files/company/downloads/company_profile_access_to_medicine_index_2012_03122012_final_gsk.pdfhttp://www.accesstomedicineindex.org/sites/www.accesstomedicineindex.org/files/company/downloads/company_profile_access_to_medicine_index_2012_03122012_final_gsk.pdfhttp://www.accesstomedicineindex.org/sites/www.accesstomedicineindex.org/files/company/downloads/company_profile_access_to_medicine_index_2012_03122012_final_gsk.pdfhttp://www.accesstomedicineindex.org/sites/www.accesstomedicineindex.org/files/company/downloads/company_profile_access_to_medicine_index_2012_03122012_final_gsk.pdfhttp://www.accesstomedicineindex.org/sites/www.accesstomedicineindex.org/files/company/downloads/company_profile_access_to_medicine_index_2012_03122012_final_gsk.pdfhttp://www.accesstomedicineindex.org/sites/www.accesstomedicineindex.org/files/company/downloads/company_profile_access_to_medicine_index_2012_03122012_final_gsk.pdfhttp://www.gsk.com/content/dam/gsk/globals/documents/pdf/GSK-on-IP-and-access-to-medicines-in-developing-countries.pdfhttp://www.gsk.com/content/dam/gsk/globals/documents/pdf/GSK-on-IP-and-access-to-medicines-in-developing-countries.pdfhttp://www.gsk.com/content/dam/gsk/globals/documents/pdf/GSK-on-IP-and-access-to-medicines-in-developing-countries.pdfhttp://www.gsk.com/content/dam/gsk/globals/documents/pdf/GSK-on-IP-and-access-to-medicines-in-developing-countries.pdfhttp://www.gsk.com/content/dam/gsk/globals/documents/pdf/GSK-on-IP-and-access-to-medicines-in-developing-countries.pdfhttp://www.gsk.com/content/dam/gsk/globals/documents/pdf/GSK-on-IP-and-access-to-medicines-in-developing-countries.pdfhttp://www.gsk.com/content/dam/gsk/globals/documents/pdf/GSK-on-IP-and-access-to-medicines-in-developing-countries.pdfhttp://www.gsk.com/content/dam/gsk/globals/documents/pdf/GSK-on-IP-and-access-to-medicines-in-developing-countries.pdfhttp://www.gsk.com/content/dam/gsk/globals/documents/pdf/GSK-on-IP-and-access-to-medicines-in-developing-countries.pdfhttp://www.gsk.com/content/dam/gsk/globals/documents/pdf/GSK-on-IP-and-access-to-medicines-in-developing-countries.pdfhttp://www.gsk.com/content/dam/gsk/globals/documents/pdf/GSK-on-IP-and-access-to-medicines-in-developing-countries.pdfhttp://www.gsk.com/content/dam/gsk/globals/documents/pdf/GSK-on-IP-and-access-to-medicines-in-developing-countries.pdfhttp://www.gsk.com/content/dam/gsk/globals/documents/pdf/GSK-on-IP-and-access-to-medicines-in-developing-countries.pdfhttp://www.gsk.com/content/dam/gsk/globals/documents/pdf/GSK-on-IP-and-access-to-medicines-in-developing-countries.pdfhttp://www.gsk.com/content/dam/gsk/globals/documents/pdf/GSK-on-IP-and-access-to-medicines-in-developing-countries.pdfhttp://www.gsk.com/content/dam/gsk/globals/documents/pdf/GSK-on-IP-and-access-to-medicines-in-developing-countries.pdfhttp://www.gsk.com/content/dam/gsk/globals/documents/pdf/GSK-on-IP-and-access-to-medicines-in-developing-countries.pdfhttp://www.gsk.com/content/dam/gsk/globals/documents/pdf/GSK-on-IP-and-access-to-medicines-in-developing-countries.pdfhttp://www.gsk.com/content/dam/gsk/globals/documents/pdf/GSK-on-IP-and-access-to-medicines-in-developing-countries.pdfhttp://www.gsk.com/content/dam/gsk/globals/documents/pdf/GSK-on-compulsory-licences.pdfhttp://www.gsk.com/content/dam/gsk/globals/documents/pdf/GSK-on-compulsory-licences.pdfhttp://www.gsk.com/content/dam/gsk/globals/documents/pdf/GSK-on-compulsory-licences.pdfhttp://www.gsk.com/content/dam/gsk/globals/documents/pdf/GSK-on-compulsory-licences.pdfhttp://www.gsk.com/content/dam/gsk/globals/documents/pdf/GSK-on-compulsory-licences.pdfhttp://www.gsk.com/content/dam/gsk/globals/documents/pdf/GSK-on-compulsory-licences.pdfhttp://www.gsk.com/content/dam/gsk/globals/documents/pdf/GSK-on-compulsory-licences.pdfhttp://www.gsk.com/content/dam/gsk/globals/documents/pdf/GSK-Annual-Summary-2012.pdfhttp://www.gsk.com/content/dam/gsk/globals/documents/pdf/GSK-Annual-Summary-2012.pdfhttp://www.gsk.com/content/dam/gsk/globals/documents/pdf/GSK-Annual-Summary-2012.pdfhttp://www.gsk.com/content/dam/gsk/globals/documents/pdf/GSK-Annual-Summary-2012.pdfhttp://www.gsk.com/content/dam/gsk/globals/documents/pdf/GSK-Annual-Summary-2012.pdfhttp://www.gsk.com/content/dam/gsk/globals/documents/pdf/GSK-Annual-Summary-2012.pdfhttp://www.gsk.com/content/dam/gsk/globals/documents/pdf/GSK-Annual-Summary-2012.pdf8/13/2019 GSK on addressing AIDS issue in African countries
20/20
Top Related