8. PHARMACEUTICAL _ GSK

Question 1

GLOBAL STRUCTURE & OPERATIONS

Answer 1

• Global pharmaceutical player
• 84 manufacturing sites in 36 different countries
• Employs 100,000+ people
• Pharmaceuticals 2/3 of turnover
• Spends approx. £5billion on R&D
• Researches treatments for all three of WHOs priority diseases: HIV, Malaria, TB

Question 2

R & D

Answer 2

Spends $ 5 billion/ year on R&D
eg made world’s First approved Malaria vaccine

Currently working on
GENOMICS/AI - personalised drug treatments

Researches treatments for all three of WHOs priority diseases: HIV, Malaria, TB

Question 3

PATENTED DRUGS

Answer 3

• HIV Treatments: DOLUTEGRAVIR
  Antiretroviral drug has been a game-changer in HIV treatment
  Effective & easy to take treatment for HIV
• RNA VACCINE Technology:
  GSK’s advancements in RNA technology –> revolutionise vaccine development and other disease treatments eg Cancer

MALARIA VACCINE

Question 4

DRUG MANUFACTURE
GLOBAL FLOWS OF DISTRUBUTION

Answer 4

Operates in 150 countries
UK hosts one of most advanced manufacturing centres in world.

Question 5

CHALLENGES

Answer 5

Business Model is difficult - profit at expense of helping people?

High cost of new drug development - only develop if market large enough
Demand for drugs in countries which cannot afford to pay for them
Governance/Standards/Licences - different in each country
Availability of medicinal plants / sustainability

Question 6

CRITICSMS

Answer 6

Make huge profits $ 7 billlion in 2019
Overcharging at expense of governments & people eg Insulin
Push drugs which are taken long term eg anti-depressants - not very ethical?
Accused of lobbying Governments - too much influence on healthcare policies?
Don’t fund research into tropical diseases as not profitable - long-tern effects on LIDCs

Question 7

STRATEGIES TO IMPROVE ETHICS & SUSTAINABILITY

Answer 7

Committed to
Ethical Policy -
Offer HIV drugs at discount - for greater good
Offer 5% of sales revenue to communities - offset bio-piracy
Invest 20% of a country’s profits back into that country
Issue local manufacturing licences - good for jobs, economy in different countries

Use Renewable Energy Use in manufacturing/ suplliers
Sustainable sourcing of suppliers