GlaxoSmithKline

GlaxoSmithKline plc ( ) is a British based pharmaceutical, biologicals, and healthcare company. GSK is a research-based company with a wide portfolio of pharmaceutical products covering anti-infectives, central nervous system (CNS), respiratory, gastro-intestinal/metabolic, oncology and vaccines products. It also has a Consumer Healthcare operation comprising leading oral healthcare products, nutritional drinks and over the counter (OTC) medicines.

As the second largest pharmaceutical company in the world (after Pfizer), the company had sales of £21.66 billion and made a profit of almost £6.9 billion in 2005. It employs around 110,000 people worldwide, including over 40,000 in sales and marketing. Its global headquarters are GSK House in Brentford, London, United Kingdom, with its United States operations jointly based in Philadelphia and Research Triangle Park (RTP) in North Carolina. The company is listed on the London and New York stock exchanges. The majority of its activity is in the United States, although the company has a presence in almost 70 countries.

In 2005, pharmaceutical sales accounted for £18.66 billion (or 86%) of GSK's total sales. Sales are based around a broad range of products with the most successful being:

Seretide / Advair (combination of the bronchodilator salmeterol and the steroid fluticasone, £3,003m)
Avandia (rosiglitazone, a PPAR-gamma agonist, £1,154m)
Lamictal (lamotrigine, an anticonvulsant used to treat various types of epilepsy, £849m)
Zofran (ondansetron hydrochloride, used to prevent nausea and vomiting associated with chemotherapy and radiotherapy for cancer, £837m)
Wellbutrin (bupropion, an anti-depressant, £739 m)

Corporate governance

Current members of the board of directors of GlaxoSmithKline are:

Chris Gent (Non-Executive Chairman);
Jean-Pierre Garnier (Chief Executive Officer);
Lawrence Culp (Non-Executive Director);
Sir Crispin Davis (Non-Executive Director);
Julian Heslop (Chief Financial Officer);
Deryck Maughan (Non-Executive Director);
Ian Prosser (Senior Independent Non-Executive Director);
Ronaldo Schmitz (Non-Executive Director);
Moncef Slaoui (Chairman, Research & Development);
Tom De Swaan (Independent Non-Executive Director);
Robert Wilson (Non-Executive Director);
Daniel Podolsky (Non-Executive Director).

Merger History

GSK was formed in December 2000 by a merger between Glaxo Wellcome and SmithKline Beecham, both the product of mergers themselves, as recently as 1995 for Glaxo Group Research and Burroughs Wellcome. GSK was actually incorporated in December 1999 as part of the lengthy merger process.

Good works

For many years now GSK has been a leading contributor to a multinational government and industry alliance to rid the world of lymphatic filariasis (elephantiasis). LF threatens over one billion people in 83 countries. Approximately 120 million people are infected with the parasites, 40 million of whom have clinical symptoms of the disease. The Global Alliance to Eliminate LF was formed with the support of the pharmaceutical companies GlaxoSmithKline and Merck to help countries with LF respond. GSK has donated over 440 million albendazole tablets to date, which serve as a cornerstone of the program.

JP Garnier, CEO of GlaxoSmithKline added, “The Egyptian data shows that we can now eliminate a disease that has plagued the world for centuries. We remain committed to donating as much albendazole as required to eliminate this disabling disease, but ultimate success will depend on continued long-term commitments by all partners across the globe.”

In addition Glaxo has been short-listed for awards such as The Worldaware Business Award for its work to eliminate malaria in Kenya.

Global Locations

Global Pharmaceutical Operations headquarters in Brentford, United Kingdom with US operations based at Franklin Plaza in Philadelphia, Pennsylvania and Research Triangle Park, North Carolina.
Consumer Products headquarters in Pittsburgh, Pennsylvania
Major R&D sites in Stevenage, United Kingdom; Harlow, United Kingdom; Ware, United Kingdom; Research Triangle Park, North Carolina; and Upper Merion and Upper Providence, Pennsylvania
Major manufacturing sites for prescription products in Ware, United Kingdom; Barnard Castle, United Kingdom; Crawley, United Kingdom; Bristol, Tennessee; King of Prussia, Pennsylvania; Zebulon, North Carolina; Jurong Singapore and Cork Ireland.
Major manufacturing sites for consumer products in Maidenhead, United Kingdom; Cork, Ireland; Aiken, South Carolina; Clifton, New Jersey; Memphis, Tennessee; and St. Louis, Missouri
GSK has a presence in over 72 countries

Diversity

GlaxoSmithKline was named one of the 100 Best Companies for Working Mothers in 2004 by Working Mothers magazine and was recognized by the International Charter for its efforts. GSK also received a perfect score of 100 percent from the Human Rights Campaign Foundation's 2005 Corporate Equality Index, an annual report card of corporate America's treatment of gay, lesbian, bisexual, and transgender (GLBT) employees, customers and investors.

Controversy

The company has been targeted by animal rights activists because it is a customer of the controversial animal-testing company, Huntingdon Life Sciences (HLS). HLS has been the subject since 1999 of an international campaign by Stop Huntingdon Animal Cruelty and the Animal Liberation Front (ALF), ever since footage shot covertly by People for the Ethical Treatment of Animals, which was shown on British television, showed staff punching, kicking, screaming and laughing at the animals in their care.

On September 7, 2005, the ALF detonated a bomb containing two litres of fuel and four pounds of explosives on the doorstop of the Buckinghamshire home of Paul Blackburn, GSK's corporate controller, causing minor damage. An ALF statement left on the animal-rights website Bite Back appeared to warn GSK that there would be further action: "We have identified and tracked down many of your senior executives and also junior staff, as well as those from other HLS customers. Drop HLS or you will face the consequences. For all the animals inside HLS, we will be back." [http://www.guardian.co.uk/uklatest/story/0,1271,-5308648,00.html?gusrc=ticker-103704

In November 2005, AIDS Healthcare Foundation accused the company of boosting its short-term monopoly profit by not increasing production of the anti-AIDS drug AZT despite a surge in demand, hence creating a shortage that affected many AIDS patients in Africa. ^*

In June 2003 the U.S. Food and Drug Administration released an advisory statement regarding the use of Paxil for the paediatric population ^*. However, the US government has not banned the use of the drug for children, as the United Kingdom has, but instead directed the manufacturer to include a "black box" label on the prescription medication. As of 2006, there is currently no consensus on the effects of Paxil in youth.

In June 2004 the company had court proceedings initiated against them on allegations of fraud. The allegation is that the company suppressed research that shows that Paxil/Seroxat is little more effective than a placebo and increases suicidal feelings in young people, side effects which have commonly been reported by users for some time.

At the AGM on 19 May 2003, GSK shareholders rejected a motion regarding a £22 million pay and benefits package for Jean-Pierre Garnier. This is the first time such a rebellion by shareholders against a major British company has occurred, but is regarded as a possible turning point against other so-called "fat cat" deals within executive pay structures.

Also a band called Amateur Transplants parodied this company by opening a song with the comment that a company called "SmaxoGlithKline" have asked them to endorse their new drug Paracetamoxyfrusebendroneomycin. SmaxoGlithKline is the same as GlaxoSmithKline except that the "Gl" and "Sm" have been swapped around.

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