GlaxoSmithKline

This article is part of the Pharma_Portal project of Spinwatch.

Glaxo Wellcome and SmithKline Beecham merged in 2001 to become GlaxoSmithKline plc (GSK), the largest pharmaceutical company in the world.

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’. GSK has shown its commitment by suing the South African Government for trying to supply AIDS victims with medicine they can afford, knowingly producing toxic drugs, and by emitting more carcinogens than almost any other chemical producer in the UK.

Industry areas: Prescription Medicines, Vaccines, and Consumer Health Products (i.e. toothpaste, nutritional drinks and over the counter (OTC) medicine).

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.).

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.

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.”

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). And in 1972 Beecham Group Ltd made an unsuccessful bid to buy Glaxo Group Ltd.

Subsidiaries

In January 2007, Domantis (human domain antibody theraputics) became a wholly owned subsidiary of GlaxoSmithKline

Products

GlaxoSmithKline’s pharmaceuticals include the antidepressant Paxil/Seroxat, the HIV/AIDS treatment Combivir, Zofran, a treatment for alcoholism, and Avandia, 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.

people

Board of Directors

As of May 2010:

• Professor Sir Roy Anderson - Non-Executive Director. Professor of Infectious Disease Epidemiology in the Faculty of Medicine, Imperial College, London.
• Dr Stephanie Burns - Non-Executive Director. Chairman, president and chief executive officer of Dow Corning.
• Lawrence Culp - Non-Executive Director. President and Chief Executive Officer of Danaher Corporation.
• Sir Crispin Davis - Non-Executive Director
• Sir Christopher Gent - Non-Executive Chairman
• Julian Heslop - Chief Financial Officer. Assumed the role of Chief Financial Officer for GlaxoSmithKline in April 2005.
• Sir Deryck Maughan - Non-Executive Director
• James Murdoch, non-executive director. He is the son of Rupert Murdoch and is Chairman and Chief Executive of News Corporation, Europe and Asia. He is also Non-Executive Chairman of BSkyB and a member of the Board of News Corporation. He served as Chief Executive Officer of BSkyB from 2003 to 2007 and was also previously Chairman and Chief Executive Officer of Star TV. He also serves on the Leadership Council of The Climate Group.
• Dr Daniel Podolsky - Non-Executive Director. Chief of Gastroenterology at Massachusetts General Hospital and Harvard Medical School.
• Tom de Swaan - Non-Executive Director
• Sir Robert Wilson - Non-Executive Director. Non-Executive Chairman of BG Group.
• Andrew Witty - Chief Executive Officer. He assumed this role in May 2008 after being appointed to the the Board in January 2008.

As of 2002:

• 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). 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.
• 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.
• 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.
• 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.
• 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.
• 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.
• 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.
• 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.
• 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. 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.

Turnover

In 2001, GlaxoSmithKline had sales totalling £20.5 billion, and before tax profits of £6.2 billion.

Number of Employees

GSK employs 100,000 people, 40,000 of which work in Sales and Marketing.

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.” 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 and Lobbying

PR companies that GSK have retained include:

Burson Marsteller: In February 20001 GlaxoSmithKline selected Burson Marsteller (BM) to handle its launch in two regions. 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. A full list of their clients and the various holes they have helped clients out of can be found at: http://www.amme.com.

In 2003 Pharmafocus report that 'Cohn & Wolfe has been hired by GlaxoSmithKline to help NiQuitin CQ win the overall number one spot in the smoking cessation market' .

Kimmons & Kimmons is a lobbying firm led by a former lobbyist for pharmaceuticals giant GlaxoSmithKline.

In November 2007 Brand Republic announced that David Daley, GlaxoSmithKline’s (GSK) Senior External Communications Manager left to take on the role of Chief Operating Officer with The Health Protection Agency (HPA).

Before merging to become GSK, SmithKline Beecham and Glaxo Wellcome are listed as clients for business intelligence firm Business Insights.

In 2008, GSK is listed as a client of Innovex and The Gorlin Group

GSK is also listed as a client of Russian firm Mikhailov and Partners..

In 2008, GSK is listed as a member of the American Benefits Council and the International Federation of Pharmaceutical Manufacturers and Associations.

The Centre for Responsive Ethics report the following firms hired to lobby on behalf of GSK in 2007:

• Bockorny Group - $180,000
• Wheat Government Relations - $100,000
• Walker, Martin & Hatch - $90,000
• Barbour, Griffith & Rogers - $80,000
• BKSH & Associates - $80,000
• Dutko Worldwide - $78,000
• Health Policy Alternatives Inc - $46,100
• DC Navigators - $45,000
• Cornerstone Government Affairs - $40,000

Other agencies hired previous to 2007 (during the period 1999-2006) are reported as...

• Hogan & Hartson
• Kent & O'Connor
• DC Navigators
• Bergner, Bockorny et al
• Bockorny Petrizzo Inc
• Arent, Fox et al
• Skadden, Arps et al
• Capitol Assoc
• Parry, Romani et al
• Troutman Sanders
• Kessler & Assoc
• Haake & Assoc
• Swidler, Berlin et al
• Anders, Jeffrey M

Government and the Corporate Purse

The Centre for Responsive Ethics report the following political donations by GSK:

• 2007-2008 $533,167 (43% Democrats, 57% Republicans) - note:full figures not yet available for this cycle.
• 2005-2006 $1,110,101 (30% Dems, 69% Repubs)
• 2003-2004 $1,086,567 (30% Dems, 71% Repubs)
• 2001-2002 $1,526,938 (19% Dems, 81% Repubs)
• 1999-2000 $1,878,893 (16% Dems, 84% Repubs)

Lobbying expenditure breaks down as follows:

• 2007 - $3,620,000 (Full figures not yet collated)
• 2006 - $991,000
• 2005 - $4,860,000
• 2004 - $4,900,000
• 2003 - $2,900,000
• 2002 - $4,100,000
• 2001 - $4,540,000
• 2000 - $1,500,000
• 1999 - $2,740,000

Affiliations

GlaxoSmithKline is a member of Forum for the Future , which advertises itself as a charity working in the area of sustainable development.

GSK are reported to be a principle funder and Business Forum member for the Social Market Foundation in 2005/06.

Patient Groups

During 2006, GSK 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

Corporate crimes

Animal Welfare

GlaxoSmithKline uses animal testing and vivisection in its drug research. In its company policy on animal testing GSK “acknowledges that it has a moral responsibility to ensure best practice in the humane treatment of laboratory animals.” 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.” 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.

Failing Global Health Needs

14 Million people die each year from infectious diseases, most of them in developing countries. 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. 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). 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. 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.

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.

Also, in May 1994, the Ulverston site discharged, again without authorisation, 1,350m3 of “ineffectively treated effluent”. The company was required by law to notify the authorities within 24 hours, but they didn’t until six days later.

Intimidating critics

In November 2007, The United States Senate Committee on Finance (Committee) issued a report detailing GlaxoSmithKline’s (GSK) intimidation of an independent scientist (Dr John Buse) who began voicing concern of Avandia (a drug GSK manufactures to control glucose levels in diabetics) in 1999. The drug was linked to an increased risk of cardiovascular problems and GSK tried to silence Dr Buse by complaining to his superiors and threatening a lawsuit. It is estimated that Avandia caused approximately 83,000 excess heart attacks since coming on the market.

The Committee also reported how a GSK official had stated how:

‘Our chances on having Buse reflect our views and messages will be enhanced greatly if we tell him what they are rather than relying on him to development on his own accord via examining data…. There is no evidence that Dr. Buse will come to these views without some guidance and support. Of course care will need to be taken to work any overview pieces in a way that appears academic rather than too commercial to enhance the probability that Dr. Buse will adopt our views as his own’.

The Committee conclude by stating how they believe that the stifling of expression through intimidation is a pattern of behaviour by pharmaceutical executives and prevalent throughout the pharmaceutical industry.

For more details see Powerbase page GlaxoSmithKline Silencing Critics Through Intimidation

Secrecy around antidepressant drug Seroxat increasing suicidal behaviour

In March 2008, the Medicines and Healthcare products Regulatory Agency (MHRA) reported the findings of their investigation into the antidepressant drug Seroxat. The investigation was undertaken with a view to a potential criminal prosecution for breach of drug safety legislation as GSK had failed to inform the MHRA of information it had on the safety of Seroxat in under 18’s. GSK had undertaken clinical trials in 2003 which confirmed that Seroxat was ineffective and inappropriate for young people under the ages of 18. The trials showed that there is a higher risk of suicidal behaviour if young people were treated with Seroxat than if they received a placebo. This is concerning news as GSK had known of this for years yet had failed to disclose it.

Professor Kent Woods, MHRA Chief Executive, said:

“I remain concerned that GSK could and should have reported this information earlier than they did. All companies have a responsibility to patients, and should report any adverse data signals to us as soon as they discover them. This investigation has revealed important weaknesses in the drug safety legislation in force at the time'.

The report states that 'there is no realistic prospect of a conviction in this case' as 'legislation in force at the time was not sufficiently strong or comprehensive as to require companies to inform the regulator of safety information when the drug was being used for, or tested outside its licensed indications'. In view of this the MHRA claim to be taking 'immediate steps to ensure the law is strengthened further, so that there can be no doubt as to companies’ obligations to report safety issues'. How this will be achieved (or how effective it will be) remains to be seen.

The company may not have been legally 'obliged' to divulge the information in the past. However the findings of their trials flies in the face of GSK own stated 'mission' which is advertised as 'to improve the quality of human life by enabling people to do more, feel better and live longer'. It also renders their 'Responsibility' to 'patient safety' commitments as little more that rhetoric and spin. For example, statements such as...

• 'Ensuring patient safety is extremely important and we take the safety of all our medicines and medical devices very seriously'.
• Their stated 'role' to 'collect, investigate and proactively evaluate information relating to side effects of medicines for the purpose of protecting patients and advising on drug safety'.
• 'to ensure patient interest is served through the prompt detection of a potential safety issue with one of our drugs so that appropriate communication with regulators occurs, and then, following evaluation, decisions can be made and action taken'.

GSK also state that 'patients must discuss with their doctors the risks of experiencing side effects from medicines and that the benefit they receive from a medication should outweigh the risk'. Yet how can they do that if the side affects (such as an increase in suicidal behaviour) are not disclosed to the doctors, patients or even the regulators.

Seroxat is referred to in an article on MSI's website (MSI is a UK based healthcare marketing consultancy which is part of Cello Plc) which advocates 'Drug Repurposing' in order to 'extend drug use into new indications to preserve or extend the value of a pharmaceutical brand'.

Further Information and Resources

1. Medecins Sans Frontieres (MSF) is an international humanitarian aid organisation that provides emergency medical assistance to populations in danger in more than 80 countries.
2. Oxfam; Oxfam's campaign is calling for world trade rules to be changed, see more or email: or call 01865 312610.
3. Open Secrets: Campaigning to make generic drugs more widely available at: [10]
4. The Ecologist Magazine
5. Ethical Consumer

Which? style guide to ethical shopping plus critical information about brands and corporations.

1. 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.
2. 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

External Links

• MSI 'Drug Repurposing' Accessed 13th May 2008