Glaxosmithkline Controversy Paper

But this is not necessarily true. Western governments are usually generous about funding drug industry research. These governments also allow the drug companies to market discoveries and new drugs that are produced in government and university laboratories. The most expensive aspect of producing a drug is the pre-clinical research, which is performed by the government and universities, not the drug companies.

For years, the news media highlighted the common practice of doctors receiving payments from drug companies for promoting and prescribing their product. According to Business Insider, Nordisk spent $816,000 in 2013 in order to promote Victoza to prescribers. Doctors were paid thousands by companies for speaking and consulting about their drug products.

Glaxo Wellcome Inc’s primary business is to market prescription products to physicians and health care providers. One of the top three pharmaceutical firms in the world, Glaxo Wellcome Inc. held about 4 percent of the worldwide prescription pharmaceutical market. The U.K. based company was formed in 1995 when Glaxo Pharmaceuticals acquired Burroughs Wellcome. While the company is based in the U.K., the U.S. market represented approximately 40 percent of worldwide sales while the U.K. produced about seven percent. As of 1997 Glaxo Wellcome Inc. had 22 local operating companies in nine countries including the U.S. Because of the harsh requirements of the

The Pharmaceutical industry has been in the spotlight for decades due to the fact that they have a reputation for being unethical in its marketing strategies. In The Washington Post Shannon Brownlee (2008) states, “We try never to forget that medicine is for the people. It is not for the profits. The profits follow.” This honorable statement is completely lost in today’s world of pharmaceutical marketing tactics. These tactics are often deceptive and biased. Big Pharma consistently forgets their moral purpose and focuses primarily on the almighty dollar. Big Pharma is working on restoring their reputation by reforming their ethical code of conduct.

There has been increasing controversy surrounding pharmaceutical marketing and influence as accusations and findings of influence on doctors and other health professionals through drug reps, including the constant provision of marketing 'gifts' and biased information to health professionals have lead to the suspicion of influencing doctors decisions in a way that profits the pharmaceutical company which in some cases has resulted in doctors prescribing products which would not benefit the patient at all or less than other drugs. Some advocacy groups, such as No Free Lunch, have often criticized the effect of drug marketing to physicians but the huge lobby the industry has established make it difficult for such activists groups to achieve any

“GSK” According to its price differential strategy or price discrimination which is a sort of Monopolistic market power was separated from its customers, this power came from where? GSK had sufficient control over prescriptions drugs to determine significantly the terms on which other individuals shall have access to it and this power make GSK able to alter market price of prescription drugs in America.

Based in the United Kingdom, GW Pharmaceuticals was co-founded by Dr. Brian Whittle and Dr. Geoffrey Guy in 1988 (GW Pharmaceuticals, 2014) with the focuses of “discovering, developing and commercializing” medications which harness the therapeutic effects cannabis components for use in areas of oncology and Central Nervous System Disorders (GW Pharmaceuticals, 2014). GW’s lead product, Satives®, was the “world’s first plant derived cannabinoid prescription drug” with its main use being for the treatment of MS spasticity (GW Pharmaceuticals, 2014). The company is also developing Epidiolex® for the use of controlling pediatric epilepsy as well as researching many other avenues for product development (GW Pharmaceuticals, 2014). Since the initial public offering in 2013 on the NASDAQ Global Market, GW has rapidly grown and now the company “occupies a world leading position in cannabinoid science” (GW Pharmaceuticals, 2014). With patients as the driving force behind their efforts,

Strategic Management deals with identification of goals and objectives of a company by its top management and implementation of activities and processes to coordinate with the resource of the company with mission, vision and strategy of the overall company (Frigo and Anderson, 2012; pp. 51-68). This report is about the strategic management of the GlaxoSmithKline company ltd, one of the largest manufacturing companies in United Kingdom. GlaxoSmithKline company’s management strategy has been critically analyzed here through the company has become a large revenue earning company in the world. GlaxoSmithKline company ltd (GSK) is a British Multinational healthcare company which research and develop products in three primary fields such as Pharmaceuticals, Vaccines and Consumer Healthcare.

GSK is the 2nd largest pharmaceutical firm in the world, and the largest in the UK by sales and profits, it is responsible for 7% of the worlds pharmaceutical market, and has its stocks listed both in UK and US (O 'Rourke, 2002). The origin of the so called blockbuster model, is partly linked with Glaxo (as it was previously known). In the early 80’s, then Glaxo brought to light their first blockbuster drug, Zantac, which was an anti-ulcer drug, which was very similar to the a pre existing drug Tagamet (first ever blockbuster) sold by Smith Kline & French, their completion at the time (MONTALBAN and SAKINÇ, 2011). The introduction of this drug, brought about an increasing sales force in the US, the company soon became dependent on the drug, because it represented a large part of their profit. In 2002, 8 blockbusters of GSK contributed to $14.240 million sales revenue, taking up 53% of its total ethical sales (Froud et al 2006). However, due to the nature of the pharmaceutical industry, the patent began to expire, in other to avoid the patent cliff, Glaxo merged with Wellcome in 1995, which ensured a growing number of sales force, and with Beecham in 2000 (Froud et al., 2006) this merger, boosted the confidence of investors, by growing the business inorganically. For Big Pharma, this block buster model is very profitable, because with the high cost of R&D, the drugs are able to generate ample profit, to cover the sunk costs

1. Pricing: Many Asian and African countries are poor and cannot afford the costly medicines. The Pharmaceutical firms spend vast amounts on R&D in creating and marketing drugs, thus charging high prices enables for cost of capital recovery and profit generation.

This is a strategic analysis of GlaxoSmithKline that examines the key factors that influence the company and its activities. The strategic analysis will examine key factors in the company’s internal and external environment and their influence on the company’s strategies. GlaxoSmithKline is a global healthcare company that offers pharmaceutical, vaccines and consumer products. The company is a product of various mergers, the latest occurring in 2001 between GlaxoWellcome and SmithKline Beecham. The company started in London United Kingdom in 1715 as Plough Court pharmacy and has evolved to become one of the leading global healthcare companies. The healthcare company operates in more than 150 countries with 89 manufacturing locations and research centers in the USA, China, UK and Belgium. In 2015, the company’s sales grew to £23.9 billion from £23.0 billion in 2014 (GlaxoSmithKline plc. 2015).

Companies are expected by society to act responsibly which translates into a set of corporate responsibility principles, the outcome being a substantial difference to the durability, prosperity and liveability of the communities in which they operate (Smith 2008).GlaxoSmithKline is a world leading research based pharmaceutical company, with a mission that is challenging and arousing to improve the quality of human life. GlaxoSmithKline has a robust combination of resources and skills delivering strong growth in today’s rapidly changing environment (Pangarkar 2006). The company also has leadership in four major therapeutic areas, anti infective, central nervous system, respiratory and gastro intestinal/metabolic and is also leading in the

A week ago it developed that Glaxosmithkline's Horlicks, a brand that has constantly advertised itself on its time to hit the hay profits, is to go one stage further and incorporate specialized proof in its advertising to demonstrate that it helps individuals rest. GSK plainly sees its legacy as a "logical sustenance organization" as an indispensable USP in today's aggressive beverages market. Additionally, it required to do something with Horlicks on the grounds that it has been losing deals. Turnover fell by 3.6% to L30.3m in the year finishing July 12, 2003, as per IRI. To back its experimental stance, the brand is to get a bundling make-over from Williams Murray Hamm and a real publicizing crusade through Gray Worldwide London and Mediacom

In 2005 it paid $137.5 million to settle federal lawsuits filed by whistle-blowers that accused a company it acquired in 2003 of improper dealings with pharmaceutical manufacturers.

The shareholders of the Cheap Pharma sued Mr. de Guzman and the other two directors demanding that they render an accounting and return whatever profits they made from the Green Med transaction to cheap Pharma.