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Gsk and Access to Essential Medicines

In: Business and Management

Submitted By hks754
Words 3288
Pages 14
Introduction to the case This case is about GlaxoSmithKline, a multinational company that operates in the pharmaceutical industry, with its headquarters situated in London. It was formed after the merger between Glaxo and SmithKline to form one company in December 2000. The company is a leading manufacturer of drugs and vaccines for major diseases such as HIV/AIDS, malaria and Tuberculosis. The main focus of the organization was public health; however, there were issues that arose which made it appear as if their focus was shifting to profit maximization for the benefit of their shareholders. Contradictory statements were made by CEO, J P Garnier which suggested that they are looking to make profits for their shareholders, which led to a questionable integrity. GlaxoSmithKline (GSK) has been putting in a lot of effort to improve the healthcare in Less Developed Countries (LDCs) and in Sub-Saharan Africa. Their substantial effort has shifted to investing in research and development (R&D) of diseases which is necessary in the developing nations since they heavily rely on external support due to the inadequate facilities and is not self-sufficient in regards to developing medicines for the diseases themselves. The less developed regions are the ones that are significantly impacted, hence GSK has taken the initiative to set preferential pricing arrangements to benefit these regions. GSK has also continued with its philanthropic deeds by continuing programs that cares for, supports and educate the locals about HIV/AIDS in 27 different countries. Another altruism act that is performed by GSK is the donation that it carries out. It donated 100 million preventative treatments as part of its commitment to eradicate Lymphatic Filariasis, which is a disease caused by parasitic worms. With the shareholders kept in mind, GSK has to ensure that it is making…...

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