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:
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
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
Key terms:
Patent drug -
Essential drug -
Generic drug -
Branded drug -
Revenue -
Profit -
Money left over from the revenue
Total amount earnt
Known by the brand name and has little reference to its chemical name
Produced by a variety of companies and refers to its chemical description
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
Exclusive rights to produce the drugs for a maximum of 20 years from development
May include new drugs that WHO regard as essential
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