Difference between revisions of "GlaxoSmithKline"
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| − | + | '''Glaxo Wellcome''' and '''SmithKline Beecham''' merged in 2001 to become GlaxoSmithKline plc (GSK), the largest pharmaceutical company in the world. | |
| − | At present, private pharmaceutical companies control the development of new medicines. Profit margins, not global health needs, are what determine the next new drug. GlaxoSmithKline’s corporate motto is ‘committed to improving the quality of human life’ | + | At present, private pharmaceutical companies control the development of new medicines. Profit margins, not global health needs, are what determine the next new drug. GlaxoSmithKline’s corporate motto is ‘committed to improving the quality of human life’<ref>[http://www.gsk.com/about/animal_research.htm] (source: GlaxoSmithKline, date viewed 28 October 2002)</ref>. GSK has shown it’s commitment by suing the South African Government for trying to supply AIDS victims with medicine they can afford <ref>http://www.guardian.co.uk/Archive/Article/0,4273,4241613,00.html (source: The Guardian, date viewed: 25 October 2002)</ref>, knowingly producing toxic drugs <ref>Corporate Watch Magazine, Issue 10, Spring 2000</ref>, and by emitting more carcinogens than almost any other chemical producer in the UK.<ref>[http://www.foe.co.uk/pubsinfo/infoteam/pressrel/2002/20021023000159.html] source: Friends of the Earth, (Accessed: 25 October 2002)</ref> |
Name: GlaxoSmithKline plc | Name: GlaxoSmithKline plc | ||
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==Market share and importance== | ==Market share and importance== | ||
| − | GlaxoSmithKline is the world’s largest pharmaceutical company. In 2000 GlaxoWellcome and SmithKline Beecham had a seven per cent share of the global pharmaceutical market, combined. In addition, the two combined companies accounted for 26 per cent of all vaccine sales, and 1 per cent of all anti-invectives (antibiotics, etc.). | + | GlaxoSmithKline is the world’s largest pharmaceutical company. In 2000 GlaxoWellcome and SmithKline Beecham had a seven per cent share of the global pharmaceutical market, combined. In addition, the two combined companies accounted for 26 per cent of all vaccine sales, and 1 per cent of all anti-invectives (antibiotics, etc.).<ref>Oxfam, Briefing paper on GlaxoSmithKline: Dare to lead, Public Health and Company Wealth, 2001</ref> |
==History== | ==History== | ||
| − | In January 2001 Glaxo Wellcome plc and SmithKline Beecham plc officially merged to become GlaxoSmithKline plc. GSK’s history dates back to 1715, when Plough Court pharmacy, a predecessor to SmithKline Beecham, was opened in London. | + | In January 2001 Glaxo Wellcome plc and SmithKline Beecham plc officially merged to become GlaxoSmithKline plc. GSK’s history dates back to 1715, when Plough Court pharmacy, a predecessor to SmithKline Beecham, was opened in London.<ref>[http://www.gsk.com/about/background.htm] (source: GlaxoSmithKline, date viewed: 2 November 2002)</ref> |
| − | Glaxo Laboratories Limited (the predecessor to Glaxo Wellcome) was set up in 1929, with director Alec Nathan. “Nathan formed the company when it was discovered that their dried baby food ‘Glaxo’ was the cause of rickets in children. The first product Glaxo Laboratories Ltd produced was therefore Ostelin, a vitamin D concentrate to replace vitamins that were destroyed in the food drying process.” | + | Glaxo Laboratories Limited (the predecessor to Glaxo Wellcome) was set up in 1929, with director Alec Nathan. “Nathan formed the company when it was discovered that their dried baby food ‘Glaxo’ was the cause of rickets in children. The first product Glaxo Laboratories Ltd produced was therefore Ostelin, a vitamin D concentrate to replace vitamins that were destroyed in the food drying process.”<ref>Corporate Watch Magazine, Issue 10, Spring 2000</ref> |
| − | From the 1930s onwards there was a flurry of mergers and acquisitions. The business of Glaxo Laboratories Ltd expanded greatly with the new market created by the founding of the National Health Service (NHS). | + | From the 1930s onwards there was a flurry of mergers and acquisitions. The business of Glaxo Laboratories Ltd expanded greatly with the new market created by the founding of the National Health Service (NHS).<ref>Corporate Watch Magazine, Issue 10, Spring 2000</ref> And in 1972 Beecham Group Ltd made an unsuccessful bid to buy Glaxo Group Ltd. <ref>[http://www.gsk.com/about/background.htm] (source: GlaxoSmithKline, date viewed: 2 November 2002)</ref> |
==Products== | ==Products== | ||
| − | + | <ref>[www.gsk.com http://www.gsk.com/] (source: GlaxoSmithKline, date viewed 23 October 2002)</ref> | |
GlaxoSmithKline’s pharmaceuticals include the antidepressant [[Paxil]]/[[Seroxat]] the HIV/AIDS treatment Combivir, Zofran, a treatment for alcoholism, and Avendia a treatment for Type 2 diabetes. | GlaxoSmithKline’s pharmaceuticals include the antidepressant [[Paxil]]/[[Seroxat]] the HIV/AIDS treatment Combivir, Zofran, a treatment for alcoholism, and Avendia a treatment for Type 2 diabetes. | ||
Their Consumer Health Products include Aquafresh Toothpaste, Tums antacid, Nicorette and the ‘nutritonal drinks’ Horlick’s, Lucozade and Ribena. | Their Consumer Health Products include Aquafresh Toothpaste, Tums antacid, Nicorette and the ‘nutritonal drinks’ Horlick’s, Lucozade and Ribena. | ||
| − | = | + | ===Board of Directors=== |
| − | == | + | Source: <ref>[http://www.gsk.com/about/boardofdirectors.htm] (source: GlaxoSmithKline, date viewed: 2 November 2002)</ref> |
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| − | + | *[[Christopher Hogg]], Chairman. Hogg was appointed to the Board of SmithKline Beecham as a Non-executive Director in 1993. He is Non-executive Chairman of [[Reuters Group]] PLC and [[Allied Domecq]] PLC, and a Non-executive Director of [[Air Liquide]] S.A. | |
| − | + | *[[J.P. Garnier]], Chief Executive Officer. Garnier became CEO of GSK in 2000. In August 2001 he was listed in the Guardian among the top ten highest paid CEOs, earning £2.5 million per year (including options and bonuses). <ref>[http://www.guardian.co.uk/business/story/0,3604,543692,00.html] Top 10: The chief executives, Wednesday 29 August 2001</ref> He also contributes to the ‘quality of human life’ by sitting on the board of arms manufacturer [[United Technologies]], the maker of the Blackhawk helicopter and other warplanes. <ref>[http://www.gsk.com/about/boardofdirectors.htm] (source: GlaxoSmithKline, date viewed: 2 November 2002)</ref> | |
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| − | *[[J.P. Garnier]], Chief Executive Officer. Garnier became CEO of GSK in 2000. In August 2001 he was listed in the Guardian among the top ten highest paid CEOs, earning £2.5 million per year (including options and bonuses). | ||
*[[John Coome]], Chief Financial Officer. Coombe joined Glaxo Holdings as Group Financial Controller in 1986 and was appointed to the Board in July 1992. His other business appointments include membership of the [[Accounting Standards Board]], Deputy Chairman of The [[Hundred Group of Finance Directors]] and a member of the Code Committee of the [[Takeover Panel]]. | *[[John Coome]], Chief Financial Officer. Coombe joined Glaxo Holdings as Group Financial Controller in 1986 and was appointed to the Board in July 1992. His other business appointments include membership of the [[Accounting Standards Board]], Deputy Chairman of The [[Hundred Group of Finance Directors]] and a member of the Code Committee of the [[Takeover Panel]]. | ||
| − | *[[Paul Allaire]], Chairman of Remuneration and Nominations Committee. Born on 21st July 1938, Paul Allaire was appointed to the Board of [[SmithKline Beecham]] as a Non-Executive Director in 1993. He is also Chairman of [[Xerox Corporation]] and a Non-executive Director of [[JP Morgan & Co. Inc]], [[Lucent Technologies]] Inc, [[Sara Lee Corporation]] and [[Priceline.com Inc.]] Food giant Sara Lee is regularly criticised for selling unhealthy food. While Glaxo’s ‘mission statement’ includes ‘enabling people to do more, feel better and live longer’ Sara Lee pleaded guilty in June 2001 to selling bad meat that killed 15 people and caused six miscarriages. He is also on the Board of Trustee of Carnegie Mellon University. | + | *[[Paul Allaire]], Chairman of Remuneration and Nominations Committee. Born on 21st July 1938, Paul Allaire was appointed to the Board of [[SmithKline Beecham]] as a Non-Executive Director in 1993. He is also Chairman of [[Xerox Corporation]] and a Non-executive Director of [[JP Morgan & Co. Inc]], [[Lucent Technologies]] Inc, [[Sara Lee Corporation]] and [[Priceline.com Inc.]] Food giant Sara Lee is regularly criticised for selling unhealthy food. While Glaxo’s ‘mission statement’ includes ‘enabling people to do more, feel better and live longer’ Sara Lee pleaded guilty in June 2001 to selling bad meat that killed 15 people and caused six miscarriages. He is also on the Board of Trustee of Carnegie Mellon University.<ref>[http://www.marketguide.com GSK Profile] Hugues S, (2001) In Health and Sickness, The Ecologist, 31(8): 53-54; Who’s Who 2001, A & C Black, p. 25.</ref> |
| − | *Dr. [[Michele Barzach]], Non-Executive Director. Appointed as a Non-executive Director of Glaxo Wellcome in 1997. Dr. Barzach also works for the [[World Bank]] as Chairman of the External Advisory Panel for Health, Nutrition and Population. She was formerly French Minister of Health and the Family. | + | *Dr. [[Michele Barzach]], Non-Executive Director. Appointed as a Non-executive Director of Glaxo Wellcome in 1997. Dr. Barzach also works for the [[World Bank]] as Chairman of the External Advisory Panel for Health, Nutrition and Population. She was formerly French Minister of Health and the Family.<ref>[http://www.marketguide.com GSK Profile]</ref> |
| − | * | + | *[[Roger Hurm]], Non-Executive Deputy Chairman. Born 9th June 1938, Sir Roger was appointed non-executive Director of Glaxo Wellcome plc in 1996 and Deputy Chairman in 1997. He was also Chairman of [[Marconi]] (formerly GEC) until he was forced to resign in September 2001 due to the companies collapsing share prices. He is a Non-executive Director of [[ICI]] plc. ICI was number one in the Environment Agency’s 1999 ‘hall of shame’ league table of polluters.<ref>[http://www.marketguide.com/ GSK Profile]; City welcomes Marconi departures but reserves judgement on new regime, Julia Finch, City editor, 5 September 2001</ref> |
| − | * | + | *[[Peter Job]], Non-Executive Director. Sir Peter Job is a Non-executive Director of GlaxoSmithKline. He was appointed as a Non-executive Director of Glaxo Wellcome in 1997 and is a Non-executive Director of [[Schroders]] plc. Sir Peter was awarded a Knight of the British Empire (KBE) by the queen. The honour was received for services to the information and media industry.<ref> http://www.guardian.co.uk/business/story/0,3604,546999,00.html ; City welcomes Marconi departures but reserves judgement on new regime, Julia Finch, City editor, Wednesday 5 September 2001, http://www.guardian.co.uk/business/story/0,3604,546999,00.html ; Hugues S, (2001) In Health and Sickness, The Ecologist, 31(8):53-54; Who’s Who 2001, A & C Black, p. 1044</ref> |
| − | *[[John McArthur]], Non-Executive Director. He was appointed as a Non-executive Director of Glaxo Wellcome in 1996. He is a former Dean of the Harvard Business School, and is a Director of BCE Inc., Cabot Corporation, Rohm and Haas Company, Springs Industries Inc. and The AES Corporation. | + | *[[John McArthur]], Non-Executive Director. He was appointed as a Non-executive Director of Glaxo Wellcome in 1996. He is a former Dean of the Harvard Business School, and is a Director of BCE Inc., Cabot Corporation, Rohm and Haas Company, Springs Industries Inc. and The AES Corporation.<ref>[http://www.gsk.com/about/boardofdirectors.htm> (source: GlaxoSmithKline, date viewed: 2 November 2002)</ref> |
| − | Donald McHenry, Non-Executive Director. Born on 13th October 1936, Donald McHenry was appointed to the Board of SmithKline Beecham as a Non-executive Director in 1989. He is a Non-executive director of the [[Coca-Cola]] Company, which has been criticised for its labour and environmental practices and the aggressive marketing of its high-sugar drinks. Other Non-executive Directorships include FleetBoston Financial Corporation and [[AT&T]] Corporation . He previously served as Ambassador and US Permanent Representative to the United Nations. | + | Donald McHenry, Non-Executive Director. Born on 13th October 1936, Donald McHenry was appointed to the Board of SmithKline Beecham as a Non-executive Director in 1989. He is a Non-executive director of the [[Coca-Cola]] Company, which has been criticised for its labour and environmental practices and the aggressive marketing of its high-sugar drinks. Other Non-executive Directorships include FleetBoston Financial Corporation and [[AT&T]] Corporation . He previously served as Ambassador and US Permanent Representative to the United Nations. <ref>GSK Profile, www.marketguide.com http://www.marketguide.com/>; Ethical Consumer 65, June/July 2000 - Research Supplement, pp. 12-13; Who’s Who 2001, A & C Black.</ref> |
| − | * | + | *[[Ian Prosser]], Non-Executive Director. Born 5th July 1943, Ian Prosser was appointed to the Board of SmithKline Beecham as a Non-executive Director in 1999. He is Executive Chairman of the pub owner [[Bass]] PLC. In addition he non-executive Deputy Chairman of [[BP Amoco]] plc, a company criticised for its pollution record He is also a member of the [[CBI President's Committee]], an industry lobby group.<ref>GSK Profile, www.marketguide.com http://www.marketguide.com/>; Hugues S, (2001) In Health and Sickness, The Ecologist, 31(8): 53-54; Who’s Who 2001, A & C Black, p.1687.</ref> |
| − | *Dr. [[Ronaldo Schmitz]], Chairman of Audit Committee. Mr. Schmitz was appointed as a Non-executive Director of Glaxo Wellcome in 1997. He is also a former member of the Board of Managing Directors of [[Deutsche Bank]] AG and a member of the Supervisory Board of [[Bertelsmann]] AG and the Board of Directors of [[Rohm and Haas]] Company. | + | *Dr. [[Ronaldo Schmitz]], Chairman of Audit Committee. Mr. Schmitz was appointed as a Non-executive Director of Glaxo Wellcome in 1997. He is also a former member of the Board of Managing Directors of [[Deutsche Bank]] AG and a member of the Supervisory Board of [[Bertelsmann]] AG and the Board of Directors of [[Rohm and Haas]] Company.<ref>[http://www.gsk.com/about/boardofdirectors.htm> (source: GlaxoSmithKline, date viewed: 2 November 2002)</ref> |
| − | *Dr. [[Lucy Shapiro]], Non-Executive Director. Dr. Shapiro was appointed to the Board of SmithKline Beecham as a Non-executive Director in 1996. She is Professor in the Department of Developmental Biology and Director of the Beckman Center at the Stanford University School of Medicine. | + | *Dr. [[Lucy Shapiro]], Non-Executive Director. Dr. Shapiro was appointed to the Board of SmithKline Beecham as a Non-executive Director in 1996. She is Professor in the Department of Developmental Biology and Director of the Beckman Center at the Stanford University School of Medicine.<ref>[http://www.gsk.com/about/boardofdirectors.htm] (source: GlaxoSmithKline, date viewed: 2 November 2002</ref> |
===Turnover=== | ===Turnover=== | ||
| − | In 2001, GlaxoSmithKline had sales totalling £20.5 billion, and before tax profits of £6.2 billion. | + | In 2001, GlaxoSmithKline had sales totalling £20.5 billion, and before tax profits of £6.2 billion.<ref>GlaxoSmithKline Annual Report 2001</ref> |
===Number of Employees=== | ===Number of Employees=== | ||
| − | GSK employs 100,000 people, 40,000 of which work in Sales and Marketing. | + | GSK employs 100,000 people, 40,000 of which work in Sales and Marketing.<ref>[http://www.gsk.com/about/about.htm About] (source: GlaxoSmithKline, date viewed: 28 October 2002</ref> |
==Influence== | ==Influence== | ||
===Education and research=== | ===Education and research=== | ||
| − | The discovery of new medicines and compounds is primarily done by, publicly funded, universities and institutes. These public institutions then license their patented discovery, for a fee, to a company that then develops the new discovery into a marketable drug. Financially strained universities often view their new discoveries as a fundraising opportunity, and “Scientists are requested to…promote and actively pursue commercialisation of their research findings.” | + | The discovery of new medicines and compounds is primarily done by, publicly funded, universities and institutes. These public institutions then license their patented discovery, for a fee, to a company that then develops the new discovery into a marketable drug. Financially strained universities often view their new discoveries as a fundraising opportunity, and “Scientists are requested to…promote and actively pursue commercialisation of their research findings.”<ref>Medecins Sans Frontieres, Fatal Imbalance: The Crisis in Research and Development for Drugs for Neglected Diseases, Sep. 2001</ref> So, instead of doing research to further scientific knowledge, public institutions are pressured to research what can be sold to a company. |
In addition, ‘Thirteen of the world's leading medical journals have recently (September 2001) mounted an outspoken attack on the rich and powerful drug companies, accusing them of distorting the results of scientific research for the sake of profits. The Lancet, the New England Journal of Medicine, the Journal of the American Medical Association and other major journals accused the drug giants of using their money - or the threat of its removal - to tie up academic researchers with legal contracts so that they are unable to report freely and fairly on the results of drug trials’. (Corporate Watch, Profile of the Pharmaceutical Industry-Footnote) | In addition, ‘Thirteen of the world's leading medical journals have recently (September 2001) mounted an outspoken attack on the rich and powerful drug companies, accusing them of distorting the results of scientific research for the sake of profits. The Lancet, the New England Journal of Medicine, the Journal of the American Medical Association and other major journals accused the drug giants of using their money - or the threat of its removal - to tie up academic researchers with legal contracts so that they are unable to report freely and fairly on the results of drug trials’. (Corporate Watch, Profile of the Pharmaceutical Industry-Footnote) | ||
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PR companies that GSK have retained include: | PR companies that GSK have retained include: | ||
| − | [[Burson Marsteller]]: In February 20001 GlaxoSmithKline selected Burson Marsteller (BM) to handle its launch in two regions. | + | [[Burson Marsteller]]: In February 20001 GlaxoSmithKline selected Burson Marsteller (BM) to handle its launch in two regions.<ref>www.bm.com/whatsnew/2001e.html</ref> BM is a large and powerful public relations company which is adept at creating a positive image for corporations involved in unethical business practices including human rights violations, environmental destruction and animal-testing. Many of these companies have faced public scrutiny and even convictions for their various activities. Further information regarding the company’s activities can be found at: |
http://www.corporatewatch.org.uk/magazine/issue2/cw2f2.html | http://www.corporatewatch.org.uk/magazine/issue2/cw2f2.html | ||
| − | [[Rick Amme & Associates]] (Media & Crisis Management). Other clients have included Sara Lee Corp., R.J. Reynold Tobacco Co. and Time-Warner Cable | + | [[Rick Amme & Associates]] (Media & Crisis Management). Other clients have included Sara Lee Corp., R.J. Reynold Tobacco Co. and Time-Warner Cable<ref> [http://www.amme.com/clients.htm]</ref>. A full list of their clients and the various holes they have helped clients out of can be found at: www.amme.com |
[[Kimmons & Kimmons]] is a lobbying firm led by a former lobbyist for | [[Kimmons & Kimmons]] is a lobbying firm led by a former lobbyist for | ||
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*[[UK Forum of Europa Donna]] | *[[UK Forum of Europa Donna]] | ||
*[[UK Pulmonary Artery Hypertension Support Association ]] | *[[UK Pulmonary Artery Hypertension Support Association ]] | ||
| − | *[[The Venus Appeal]] | + | *[[The Venus Appeal]]<ref>GSK [http://www.gsk.com/responsibility/cr_issues/patient-groups/uk-patient-organisations.htmPatient organisations, Working with UK and European patient groups: UK Groups] Accessed March 2007.</ref> |
==Corporate crimes== | ==Corporate crimes== | ||
===Animal Welfare=== | ===Animal Welfare=== | ||
| − | GlaxoSmithKline uses animal testing and vivisection in its drug research. In it’s company policy on animal testing GSK “…acknowledges that it has a moral responsibility to ensure best practice in the humane treatment of laboratory animals.” | + | GlaxoSmithKline uses animal testing and vivisection in its drug research. In it’s company policy on animal testing GSK “…acknowledges that it has a moral responsibility to ensure best practice in the humane treatment of laboratory animals.”<ref>www.gsk.com/about/animal_research.htm (source: GlaxoSmithKline, date viewed 28 October 2002)</ref> In spite of this, GSK’s testing practices are often cruel, and the tests themselves completely unnecessary. |
| − | GSK’s animal testing policy claims “Non-medical Consumer Healthcare products…are never tested on animals unless there is a specific demand for this from national governments.” | + | GSK’s animal testing policy claims “Non-medical Consumer Healthcare products…are never tested on animals unless there is a specific demand for this from national governments.”<ref>www.gsk.com/about/animal_research.htm (source: GlaxoSmithKline, date viewed 28 October 2002)</ref> Yet, the Animal rights group People for the Ethical Treatment of Animals (PETA) in August 2000 listed SmithKline Beecham as a company that manufactured animal tested products. These were personal health care and household products that were not required by US law to be tested on animals. SmithKline Beeecham’s animal testing policy at the time also stated that testing would only be carried out if required by law.<ref>Consumer Products Companies That Test on Animals [http://www.peta-online.org/ PETA website], 23 August 2000), as sited in Ethical Consumer Research Supplement, February/march 2001</ref> |
===Failing Global Health Needs=== | ===Failing Global Health Needs=== | ||
| − | 14 Million people die each year from infectious diseases, most of them in developing countries. | + | 14 Million people die each year from infectious diseases, most of them in developing countries. <ref>World Health Organisation, The World Health Report 2000 (Medecins Sans Frontieres, Fatal Imbalance: The Crisis in Research and Development for Neglected Diseases, September 2001)</ref> The medical treatments available are often archaic and ineffective, especially for so-called ‘neglected diseases’ (Malaria, Tuberculosis, Sleeping Sickness, Chagas disease, and leishmaniasis), whose victims are almost exclusively from developing countries and poor. These diseases are linked with poverty and unsanitary living conditions; new drugs are desperately needed. |
| − | At present, private pharmaceutical companies control the development of new medicines. People in Developing countries, who make up 80 per cent of the world’s population, only represent about 20 per cent of worldwide medicine sales. | + | At present, private pharmaceutical companies control the development of new medicines. People in Developing countries, who make up 80 per cent of the world’s population, only represent about 20 per cent of worldwide medicine sales.<ref>Medecins Sans Frontieres, Fatal Imbalance: The Crisis in Research and Development for Neglected Diseases, September 2001</ref> Since these people are relatively poor, GlaxoSmithKline, along with other major pharmaceutical companies, do not see it as profitable to develop medicines for their needs, and do negligible research into medicines which would help them. “Of all annual health related research, only 0.2 per cent is spent on pneumonia, diarrhoea, and tuberculosis-three poverty related ailments which account for 18 per cent of the global disease burden.”(Oxfam, Briefing paper on GlaxoSmithKline, 2001).<ref>Oxfam, Briefing paper on GlaxoSmithKline: Dare to Lead, Public Health and Company Wealth, 2001</ref> This failure, in effect, kills untold numbers of people every year. It is the fault of the pharmaceutical industry putting their company profits above the lives of people, but it is also the fault of governments and other bodies like the United Nations for depending on market forces to provide people with basic necessities. |
===Environmental Issues=== | ===Environmental Issues=== | ||
GlaxoSmithKline owns dozens of chemical plants all over the world. The chemical plant they own in Ulverston is marked by it’s carcinogenic emissions and repeated violations of environmental regulations. | GlaxoSmithKline owns dozens of chemical plants all over the world. The chemical plant they own in Ulverston is marked by it’s carcinogenic emissions and repeated violations of environmental regulations. | ||
| − | According to the Factory Watch website, GSK’s chemical plant in Ulverston is one of the most carcinogenic polluters in the UK. Factory Watch’s information, compiled from Environment agency data, looked at over 1,500 factories nation-wide. The Ulverston site was ranked number three on Factory Watch’s list, emitting 773 tonnes of carcinogens in 2001, 10 per cent of the national total. | + | According to the Factory Watch website, GSK’s chemical plant in Ulverston is one of the most carcinogenic polluters in the UK. Factory Watch’s information, compiled from Environment agency data, looked at over 1,500 factories nation-wide. The Ulverston site was ranked number three on Factory Watch’s list, emitting 773 tonnes of carcinogens in 2001, 10 per cent of the national total.<ref>[http://www.foe.co.uk/pubsinfo/infoteam/pressrel/2002/20021023000159.html] (source: Friends of the Earth, date viewed: 25 October 2002)</ref> |
| − | In September 1992 the Ulverston site (then owned by Glaxo Wellcome) dumped several toxic chemicals in the river Leven, without authorisation. The chemicals included trichloroethylene, chloroform, and chlorobenzene. | + | In September 1992 the Ulverston site (then owned by Glaxo Wellcome) dumped several toxic chemicals in the river Leven, without authorisation. The chemicals included trichloroethylene, chloroform, and chlorobenzene.<ref>Friends of the Earth, Factory Watch press release, 8 February 1999</ref> |
| − | Also, in May 1994, the Ulverston site discharged, again without authorisation, 1,350m3 of “ineffectively treated effluent” into M. The company was required by law to notify the authorities within 24 hours, but they didn’t until six days later. | + | Also, in May 1994, the Ulverston site discharged, again without authorisation, 1,350m3 of “ineffectively treated effluent” into M. The company was required by law to notify the authorities within 24 hours, but they didn’t until six days later.<ref>ENDS Report 292, May 1999, pp. 33-34</ref> |
==Further Information and Resources== | ==Further Information and Resources== | ||
| − | Medecins Sans Frontieres | + | #Medecins Sans Frontieres (MSF) is an international humanitarian aid organisation that provides emergency medical assistance to populations in danger in more than 80 countries. |
| − | + | #Oxfam; Oxfam's campaign is calling for world trade rules to be changed, see more or email: or call 01865 312610. | |
| − | + | #Open Secrets: Campaigning to make generic drugs more widely available at: [http://www.opensecrets.org/payback/issue.asp?issueid=GD1] | |
| − | Oxfam | + | #The Ecologist Magazine |
| − | Oxfam's campaign is calling for world trade rules to be changed, see more or email: or call 01865 312610. | + | #Ethical Consumer |
| − | |||
| − | Open Secrets | ||
| − | Campaigning to make generic drugs more widely available at: http://www.opensecrets.org/payback/issue.asp?issueid=GD1 | ||
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| − | The Ecologist Magazine | ||
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| − | Ethical Consumer | ||
Which? style guide to ethical shopping plus critical information about brands and corporations. | Which? style guide to ethical shopping plus critical information about brands and corporations. | ||
| + | #Environmental Working Group: Not-for-profit environmental research organization dedicated to improving public health and protecting the environment by reducing pollution in air, water and food. | ||
| + | #South African Treatment Action: Treatment Action Campaign: Fighting for affordable treatment for people with HIV. | ||
| − | + | ==References, Resources and Contact== | |
| − | + | ===Contact=== | |
| − | + | ====Headquarters in the UK==== | |
| − | + | :GlaxoSmithKline, | |
| − | + | :Glaxo Wellcome UK Ltd., | |
| − | + | :Stockley Park West, | |
| − | == | + | :Uxbridge, |
| − | + | :Middlesex, UB11 1BT | |
| − | + | :Tel: +44 (0)20 8990 9000 | |
| − | + | :Fax: +44 (0)20 8990 4321 | |
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| + | ====United States==== | ||
| + | :GlaxoSmithKline | ||
| + | :5 Moore Drive | ||
| + | :P.O. Box 13398 | ||
| + | :Research Triangle Park | ||
| + | :NC 27709 | ||
| + | :Phone: +1 888 825 5249 | ||
| − | [[Category:Pharmaceutical Industry]] | + | ===References=== |
| + | <references/> | ||
| + | [[Category:Pharmaceutical Industry]] | ||
[[Category: Transnational Corporations]] | [[Category: Transnational Corporations]] | ||
Revision as of 17:03, 22 October 2007
Glaxo Wellcome and SmithKline Beecham merged in 2001 to become GlaxoSmithKline plc (GSK), the largest pharmaceutical company in the world.
At present, private pharmaceutical companies control the development of new medicines. Profit margins, not global health needs, are what determine the next new drug. GlaxoSmithKline’s corporate motto is ‘committed to improving the quality of human life’[1]. GSK has shown it’s commitment by suing the South African Government for trying to supply AIDS victims with medicine they can afford [2], knowingly producing toxic drugs [3], and by emitting more carcinogens than almost any other chemical producer in the UK.[4]
Name: GlaxoSmithKline plc
Industry areas: Prescription Medicines, Vaccines, and Consumer Health Products (i.e. toothpaste, nutritional drinks and over the counter (OTC) medicine).
Contents
GlaxoSmithKline is the world’s largest pharmaceutical company. In 2000 GlaxoWellcome and SmithKline Beecham had a seven per cent share of the global pharmaceutical market, combined. In addition, the two combined companies accounted for 26 per cent of all vaccine sales, and 1 per cent of all anti-invectives (antibiotics, etc.).[5]
History
In January 2001 Glaxo Wellcome plc and SmithKline Beecham plc officially merged to become GlaxoSmithKline plc. GSK’s history dates back to 1715, when Plough Court pharmacy, a predecessor to SmithKline Beecham, was opened in London.[6]
Glaxo Laboratories Limited (the predecessor to Glaxo Wellcome) was set up in 1929, with director Alec Nathan. “Nathan formed the company when it was discovered that their dried baby food ‘Glaxo’ was the cause of rickets in children. The first product Glaxo Laboratories Ltd produced was therefore Ostelin, a vitamin D concentrate to replace vitamins that were destroyed in the food drying process.”[7]
From the 1930s onwards there was a flurry of mergers and acquisitions. The business of Glaxo Laboratories Ltd expanded greatly with the new market created by the founding of the National Health Service (NHS).[8] And in 1972 Beecham Group Ltd made an unsuccessful bid to buy Glaxo Group Ltd. [9]
Products
[10] GlaxoSmithKline’s pharmaceuticals include the antidepressant Paxil/Seroxat the HIV/AIDS treatment Combivir, Zofran, a treatment for alcoholism, and Avendia a treatment for Type 2 diabetes.
Their Consumer Health Products include Aquafresh Toothpaste, Tums antacid, Nicorette and the ‘nutritonal drinks’ Horlick’s, Lucozade and Ribena.
Board of Directors
Source: [11]
- Christopher Hogg, Chairman. Hogg was appointed to the Board of SmithKline Beecham as a Non-executive Director in 1993. He is Non-executive Chairman of Reuters Group PLC and Allied Domecq PLC, and a Non-executive Director of Air Liquide S.A.
- J.P. Garnier, Chief Executive Officer. Garnier became CEO of GSK in 2000. In August 2001 he was listed in the Guardian among the top ten highest paid CEOs, earning £2.5 million per year (including options and bonuses). [12] He also contributes to the ‘quality of human life’ by sitting on the board of arms manufacturer United Technologies, the maker of the Blackhawk helicopter and other warplanes. [13]
- John Coome, Chief Financial Officer. Coombe joined Glaxo Holdings as Group Financial Controller in 1986 and was appointed to the Board in July 1992. His other business appointments include membership of the Accounting Standards Board, Deputy Chairman of The Hundred Group of Finance Directors and a member of the Code Committee of the Takeover Panel.
- Paul Allaire, Chairman of Remuneration and Nominations Committee. Born on 21st July 1938, Paul Allaire was appointed to the Board of SmithKline Beecham as a Non-Executive Director in 1993. He is also Chairman of Xerox Corporation and a Non-executive Director of JP Morgan & Co. Inc, Lucent Technologies Inc, Sara Lee Corporation and Priceline.com Inc. Food giant Sara Lee is regularly criticised for selling unhealthy food. While Glaxo’s ‘mission statement’ includes ‘enabling people to do more, feel better and live longer’ Sara Lee pleaded guilty in June 2001 to selling bad meat that killed 15 people and caused six miscarriages. He is also on the Board of Trustee of Carnegie Mellon University.[14]
- Dr. Michele Barzach, Non-Executive Director. Appointed as a Non-executive Director of Glaxo Wellcome in 1997. Dr. Barzach also works for the World Bank as Chairman of the External Advisory Panel for Health, Nutrition and Population. She was formerly French Minister of Health and the Family.[15]
- Roger Hurm, Non-Executive Deputy Chairman. Born 9th June 1938, Sir Roger was appointed non-executive Director of Glaxo Wellcome plc in 1996 and Deputy Chairman in 1997. He was also Chairman of Marconi (formerly GEC) until he was forced to resign in September 2001 due to the companies collapsing share prices. He is a Non-executive Director of ICI plc. ICI was number one in the Environment Agency’s 1999 ‘hall of shame’ league table of polluters.[16]
- Peter Job, Non-Executive Director. Sir Peter Job is a Non-executive Director of GlaxoSmithKline. He was appointed as a Non-executive Director of Glaxo Wellcome in 1997 and is a Non-executive Director of Schroders plc. Sir Peter was awarded a Knight of the British Empire (KBE) by the queen. The honour was received for services to the information and media industry.[17]
- John McArthur, Non-Executive Director. He was appointed as a Non-executive Director of Glaxo Wellcome in 1996. He is a former Dean of the Harvard Business School, and is a Director of BCE Inc., Cabot Corporation, Rohm and Haas Company, Springs Industries Inc. and The AES Corporation.[18]
Donald McHenry, Non-Executive Director. Born on 13th October 1936, Donald McHenry was appointed to the Board of SmithKline Beecham as a Non-executive Director in 1989. He is a Non-executive director of the Coca-Cola Company, which has been criticised for its labour and environmental practices and the aggressive marketing of its high-sugar drinks. Other Non-executive Directorships include FleetBoston Financial Corporation and AT&T Corporation . He previously served as Ambassador and US Permanent Representative to the United Nations. [19]
- Ian Prosser, Non-Executive Director. Born 5th July 1943, Ian Prosser was appointed to the Board of SmithKline Beecham as a Non-executive Director in 1999. He is Executive Chairman of the pub owner Bass PLC. In addition he non-executive Deputy Chairman of BP Amoco plc, a company criticised for its pollution record He is also a member of the CBI President's Committee, an industry lobby group.[20]
- Dr. Ronaldo Schmitz, Chairman of Audit Committee. Mr. Schmitz was appointed as a Non-executive Director of Glaxo Wellcome in 1997. He is also a former member of the Board of Managing Directors of Deutsche Bank AG and a member of the Supervisory Board of Bertelsmann AG and the Board of Directors of Rohm and Haas Company.[21]
- Dr. Lucy Shapiro, Non-Executive Director. Dr. Shapiro was appointed to the Board of SmithKline Beecham as a Non-executive Director in 1996. She is Professor in the Department of Developmental Biology and Director of the Beckman Center at the Stanford University School of Medicine.[22]
Turnover
In 2001, GlaxoSmithKline had sales totalling £20.5 billion, and before tax profits of £6.2 billion.[23]
Number of Employees
GSK employs 100,000 people, 40,000 of which work in Sales and Marketing.[24]
Influence
Education and research
The discovery of new medicines and compounds is primarily done by, publicly funded, universities and institutes. These public institutions then license their patented discovery, for a fee, to a company that then develops the new discovery into a marketable drug. Financially strained universities often view their new discoveries as a fundraising opportunity, and “Scientists are requested to…promote and actively pursue commercialisation of their research findings.”[25] So, instead of doing research to further scientific knowledge, public institutions are pressured to research what can be sold to a company.
In addition, ‘Thirteen of the world's leading medical journals have recently (September 2001) mounted an outspoken attack on the rich and powerful drug companies, accusing them of distorting the results of scientific research for the sake of profits. The Lancet, the New England Journal of Medicine, the Journal of the American Medical Association and other major journals accused the drug giants of using their money - or the threat of its removal - to tie up academic researchers with legal contracts so that they are unable to report freely and fairly on the results of drug trials’. (Corporate Watch, Profile of the Pharmaceutical Industry-Footnote)
Public Relations
PR companies that GSK have retained include:
Burson Marsteller: In February 20001 GlaxoSmithKline selected Burson Marsteller (BM) to handle its launch in two regions.[26] BM is a large and powerful public relations company which is adept at creating a positive image for corporations involved in unethical business practices including human rights violations, environmental destruction and animal-testing. Many of these companies have faced public scrutiny and even convictions for their various activities. Further information regarding the company’s activities can be found at: http://www.corporatewatch.org.uk/magazine/issue2/cw2f2.html
Rick Amme & Associates (Media & Crisis Management). Other clients have included Sara Lee Corp., R.J. Reynold Tobacco Co. and Time-Warner Cable[27]. A full list of their clients and the various holes they have helped clients out of can be found at: www.amme.com
Kimmons & Kimmons is a lobbying firm led by a former lobbyist for pharmaceuticals giant GlaxoSmithKline
Patient Groups
During 2006, we provided financial support to the following UK patient groups:
- Action Cancer
- Action on Addiction
- African HIV Policy Network
- Asthma UK
- Auditory Verbal UK
- Beating Bowel Cancer
- Brainwave
- British Liver Trust
- British Lung Foundation
- British Red Cross
- British Retinitis Pigmentosa Society
- Cancerbacup
- The Cancer Campaigning Group
- Cancer Counselling Trust
- Cancer Research UK
- Centre of African Families Positive Health
- The Crescent Support Group
- Cruse Bereavement Care
- C-R-Y
- Cystic Fibrosis Trust
- Deafness Research UK
- Diabetes UK
- Doctors Support Line
- Down's Syndrome Association
- Epilepsy Action
- Great Lakes African Integration Network
- HIV Scotland
- Intercontinental Charity Organisation
- The ITP Support Association
- Jo’s Trust
- Macmillan Cancer Support
- Meningitis Research Foundation
- Migraine Action Association
- Mouth Cancer Foundation
- Multiple Sclerosis Society
- Muscular Dystrophy Campaign
- Myasthenia Gravis Association
- National AIDS Trust
- National Autistic Society
- NAM
- National Endometriosis Society
- National Society for Epilepsy
- The Parkinson's Disease Society
- The Patients Association
- Plus VE
- Positively Women
- Princess Royal Trust for Carers
- QUIT
- REACT
- Royal Hospital for Neuro-disability
- Royal National Institute for the Blind
- Roy Castle Lung Cancer Foundation
- SANE
- Shwachman-Diamond Syndrome
- Shaw Trust
- Speakability
- Terrence Higgins Trust
- The Tim Reeve Charitable Trust
- Treloar Trust
- UK Coalition of People Living with HIV and AIDS
- UK Forum of Europa Donna
- UK Pulmonary Artery Hypertension Support Association
- The Venus Appeal[28]
Corporate crimes
Animal Welfare
GlaxoSmithKline uses animal testing and vivisection in its drug research. In it’s company policy on animal testing GSK “…acknowledges that it has a moral responsibility to ensure best practice in the humane treatment of laboratory animals.”[29] In spite of this, GSK’s testing practices are often cruel, and the tests themselves completely unnecessary.
GSK’s animal testing policy claims “Non-medical Consumer Healthcare products…are never tested on animals unless there is a specific demand for this from national governments.”[30] Yet, the Animal rights group People for the Ethical Treatment of Animals (PETA) in August 2000 listed SmithKline Beecham as a company that manufactured animal tested products. These were personal health care and household products that were not required by US law to be tested on animals. SmithKline Beeecham’s animal testing policy at the time also stated that testing would only be carried out if required by law.[31]
Failing Global Health Needs
14 Million people die each year from infectious diseases, most of them in developing countries. [32] The medical treatments available are often archaic and ineffective, especially for so-called ‘neglected diseases’ (Malaria, Tuberculosis, Sleeping Sickness, Chagas disease, and leishmaniasis), whose victims are almost exclusively from developing countries and poor. These diseases are linked with poverty and unsanitary living conditions; new drugs are desperately needed.
At present, private pharmaceutical companies control the development of new medicines. People in Developing countries, who make up 80 per cent of the world’s population, only represent about 20 per cent of worldwide medicine sales.[33] Since these people are relatively poor, GlaxoSmithKline, along with other major pharmaceutical companies, do not see it as profitable to develop medicines for their needs, and do negligible research into medicines which would help them. “Of all annual health related research, only 0.2 per cent is spent on pneumonia, diarrhoea, and tuberculosis-three poverty related ailments which account for 18 per cent of the global disease burden.”(Oxfam, Briefing paper on GlaxoSmithKline, 2001).[34] This failure, in effect, kills untold numbers of people every year. It is the fault of the pharmaceutical industry putting their company profits above the lives of people, but it is also the fault of governments and other bodies like the United Nations for depending on market forces to provide people with basic necessities.
Environmental Issues
GlaxoSmithKline owns dozens of chemical plants all over the world. The chemical plant they own in Ulverston is marked by it’s carcinogenic emissions and repeated violations of environmental regulations.
According to the Factory Watch website, GSK’s chemical plant in Ulverston is one of the most carcinogenic polluters in the UK. Factory Watch’s information, compiled from Environment agency data, looked at over 1,500 factories nation-wide. The Ulverston site was ranked number three on Factory Watch’s list, emitting 773 tonnes of carcinogens in 2001, 10 per cent of the national total.[35]
In September 1992 the Ulverston site (then owned by Glaxo Wellcome) dumped several toxic chemicals in the river Leven, without authorisation. The chemicals included trichloroethylene, chloroform, and chlorobenzene.[36]
Also, in May 1994, the Ulverston site discharged, again without authorisation, 1,350m3 of “ineffectively treated effluent” into M. The company was required by law to notify the authorities within 24 hours, but they didn’t until six days later.[37]
Further Information and Resources
- Medecins Sans Frontieres (MSF) is an international humanitarian aid organisation that provides emergency medical assistance to populations in danger in more than 80 countries.
- Oxfam; Oxfam's campaign is calling for world trade rules to be changed, see more or email: or call 01865 312610.
- Open Secrets: Campaigning to make generic drugs more widely available at: [11]
- The Ecologist Magazine
- Ethical Consumer
Which? style guide to ethical shopping plus critical information about brands and corporations.
- Environmental Working Group: Not-for-profit environmental research organization dedicated to improving public health and protecting the environment by reducing pollution in air, water and food.
- South African Treatment Action: Treatment Action Campaign: Fighting for affordable treatment for people with HIV.
References, Resources and Contact
Contact
Headquarters in the UK
- GlaxoSmithKline,
- Glaxo Wellcome UK Ltd.,
- Stockley Park West,
- Uxbridge,
- Middlesex, UB11 1BT
- Tel: +44 (0)20 8990 9000
- Fax: +44 (0)20 8990 4321
United States
- GlaxoSmithKline
- 5 Moore Drive
- P.O. Box 13398
- Research Triangle Park
- NC 27709
- Phone: +1 888 825 5249
References
- ↑ [1] (source: GlaxoSmithKline, date viewed 28 October 2002)
- ↑ http://www.guardian.co.uk/Archive/Article/0,4273,4241613,00.html (source: The Guardian, date viewed: 25 October 2002)
- ↑ Corporate Watch Magazine, Issue 10, Spring 2000
- ↑ [2] source: Friends of the Earth, (Accessed: 25 October 2002)
- ↑ Oxfam, Briefing paper on GlaxoSmithKline: Dare to lead, Public Health and Company Wealth, 2001
- ↑ [3] (source: GlaxoSmithKline, date viewed: 2 November 2002)
- ↑ Corporate Watch Magazine, Issue 10, Spring 2000
- ↑ Corporate Watch Magazine, Issue 10, Spring 2000
- ↑ [4] (source: GlaxoSmithKline, date viewed: 2 November 2002)
- ↑ [www.gsk.com http://www.gsk.com/] (source: GlaxoSmithKline, date viewed 23 October 2002)
- ↑ [5] (source: GlaxoSmithKline, date viewed: 2 November 2002)
- ↑ [6] Top 10: The chief executives, Wednesday 29 August 2001
- ↑ [7] (source: GlaxoSmithKline, date viewed: 2 November 2002)
- ↑ GSK Profile Hugues S, (2001) In Health and Sickness, The Ecologist, 31(8): 53-54; Who’s Who 2001, A & C Black, p. 25.
- ↑ GSK Profile
- ↑ GSK Profile; City welcomes Marconi departures but reserves judgement on new regime, Julia Finch, City editor, 5 September 2001
- ↑ http://www.guardian.co.uk/business/story/0,3604,546999,00.html ; City welcomes Marconi departures but reserves judgement on new regime, Julia Finch, City editor, Wednesday 5 September 2001, http://www.guardian.co.uk/business/story/0,3604,546999,00.html ; Hugues S, (2001) In Health and Sickness, The Ecologist, 31(8):53-54; Who’s Who 2001, A & C Black, p. 1044
- ↑ [http://www.gsk.com/about/boardofdirectors.htm> (source: GlaxoSmithKline, date viewed: 2 November 2002)
- ↑ GSK Profile, www.marketguide.com http://www.marketguide.com/>; Ethical Consumer 65, June/July 2000 - Research Supplement, pp. 12-13; Who’s Who 2001, A & C Black.
- ↑ GSK Profile, www.marketguide.com http://www.marketguide.com/>; Hugues S, (2001) In Health and Sickness, The Ecologist, 31(8): 53-54; Who’s Who 2001, A & C Black, p.1687.
- ↑ [http://www.gsk.com/about/boardofdirectors.htm> (source: GlaxoSmithKline, date viewed: 2 November 2002)
- ↑ [8] (source: GlaxoSmithKline, date viewed: 2 November 2002
- ↑ GlaxoSmithKline Annual Report 2001
- ↑ About (source: GlaxoSmithKline, date viewed: 28 October 2002
- ↑ Medecins Sans Frontieres, Fatal Imbalance: The Crisis in Research and Development for Drugs for Neglected Diseases, Sep. 2001
- ↑ www.bm.com/whatsnew/2001e.html
- ↑ [9]
- ↑ GSK organisations, Working with UK and European patient groups: UK Groups Accessed March 2007.
- ↑ www.gsk.com/about/animal_research.htm (source: GlaxoSmithKline, date viewed 28 October 2002)
- ↑ www.gsk.com/about/animal_research.htm (source: GlaxoSmithKline, date viewed 28 October 2002)
- ↑ Consumer Products Companies That Test on Animals PETA website, 23 August 2000), as sited in Ethical Consumer Research Supplement, February/march 2001
- ↑ World Health Organisation, The World Health Report 2000 (Medecins Sans Frontieres, Fatal Imbalance: The Crisis in Research and Development for Neglected Diseases, September 2001)
- ↑ Medecins Sans Frontieres, Fatal Imbalance: The Crisis in Research and Development for Neglected Diseases, September 2001
- ↑ Oxfam, Briefing paper on GlaxoSmithKline: Dare to Lead, Public Health and Company Wealth, 2001
- ↑ [10] (source: Friends of the Earth, date viewed: 25 October 2002)
- ↑ Friends of the Earth, Factory Watch press release, 8 February 1999
- ↑ ENDS Report 292, May 1999, pp. 33-34
