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Pharmaceutical Transnational Corporations - Coggle Diagram
Pharmaceutical Transnational Corporations
Top down strategy to manage disease: GlaxoSmithKline
£23 billion turnover in 2013
GSK operate in 36 countries
2/3 of turnover comes from pharmaceutical goods
R+D GSK employ 13,000
Main features of GSK's ethical policy towards the developing world:
5% return on each product sold
Provide 3 HIV/AIDS drugs to LIDCs at significant discounts
Grant licence for the manufacture of cheap generic versions of its patented drugs
Patented drugs capped to 25% of the UK price to countries in the developing world
Invest 20% of profits from sales in each developing country into that country's infrastructure
Brand vs Generic:
Brand:
More expensive
Produced by TNC's based in Acs
Brand name
Companies invest heavily in marketing
Development focuses on diseases in ACs
Profits used for tech + research
Generic:
Potential to be cheaper
Chemical description
Produced by developing countries to ensure accessibility
NGO's supportive of generic drugs
Limited supply
TNC's sue companies for producing generic drugs
Key terms:
Patent drug -
Exclusive rights to produce the drugs for a maximum of 20 years from development
May include new drugs that WHO regard as essential
Essential drug -
List provided by WHO of generic drugs
Provide treatment to improve access to healthcare for the world's population
Not implemented in the US or any other EU country
Generic drug -
Produced by a variety of companies and refers to its chemical description
Branded drug -
Known by the brand name and has little reference to its chemical name
Revenue -
Total amount earnt
Profit -
Money left over from the revenue
What does GSK do?
Scientific breakthroughs by GSK - production of amoxicillin (bacterial infections), zidovudine (HIV infections), bendazole (parasitic infections), type 2 + oncology medications
Main focus for drug manufacture - vaccines for HIV/AIDS, malaria, TB
How they improve global health - provide drugs to LIDCs, vaccination campaigns, working on malaria vaccines
Conflicts of interest that may exist when it comes to working in LIDCs - will want to earn profit whilst also helping the developing world, lack of trust in vaccines
How they trying to help the developing world - devotes R+D resources to the needs of the developing world, providing drugs at a significant discount