GSK case study

Where is GSK headquartered?

The UK.

What was GSK’s turnover and profit in 2019?

£34 billion turnover, £7 billion operating profit.

How many medicine packs did GSK produce in 2019?

2.3 billion packs.

How many vaccine doses did GSK produce in 2019?

701 million doses.

What proportion of GSK's revenue comes from pharmaceuticals?

Two-thirds (2/3).

In how many countries does GSK operate manufacturing sites?

36 countries.

How many employees does GSK have globally?

Over 100,000.

Where are GSK's R&D centres located?

UK, USA, Spain, Belgium, China.

What is the scale of GSK's R&D investment?

£4.6 billion annually; employs 15,000 people in R&D.

What diseases are GSK currently researching as WHO priorities?

HIV/AIDS, Malaria, and Tuberculosis (TB).

Name three well-known GSK medications on the WHO essential list.

Amoxicillin, Zidovudine, Bendazole.

Why is drug development expensive and risky for GSK?

It takes ~10 years and $2.6 billion; many drugs fail during development.

Why is demand for new drugs weak in LIDCs?

Low purchasing power; sales often don't cover R&D costs.

What ethical policies has GSK adopted for developing countries?

Capped prices at 25% of UK level, 5% return, HIV drug discounts, generic licenses, reinvesting 20% profits.

What percentage return does GSK aim for in LICs?

5% return per product.

What initiative does GSK support to make drugs affordable in LICs?

Licensing for cheap generics and significant HIV/AIDS drug discounts.

What global health impact is GSK aiming to make with vaccines?

Developing effective vaccines for Malaria and Ebola.

What are some criticisms of pharmaceutical companies like GSK?

Excessive profits, high drug prices, lobbying, neglect of unprofitable diseases.

What type of drugs do pharmaceutical companies prioritize and why?

Long-term prescription drugs like opioids and antidepressants due to profitability.

What diseases have been historically neglected by pharma companies?

Forgotten tropical diseases and antibiotic-resistant infections.

Why are patents important in the pharmaceutical industry?

They protect investment, prevent market failure, and fund R&D.

How long do drug patents typically last?

20 years.

What negative effect can patents have in healthcare?

Market monopoly, high prices, limited access for the poor.

What is the estimated cost and time to develop a new prescription drug?

~$2.6 billion and around 10 years.

What would happen without patent protection in pharmaceuticals?

Reduced R&D investment; competitors undercut original inventors.

What are GSK’s contributions to tropical disease research?

Research centre in Spain focused on TB and malaria.