GSK

GlaxoSmithKline

Type

Public (LSE: GSK NYSE: GSK)

Industry

Pharmaceutical

Founded

2000,by mergerof GlaxoWellcome and
SmithKline Beecham

Headquarters

London, England, UK

Key people

Chris Gent, Chairman
Andrew Witty, Chief Executive
Julian Heslop, Chief Financial Officer
Dr. Moncef Slaoui, Chairman of Research and
Development

Products

Pharmaceuticals

Revenue

£28,368 million (2009)

Operating
income

£9,257 million (2009)

Net income

£5,669 million (2009)

Employees

99,000 (2009)

Website

www.gsk.com

GlaxoSmithKline:
Background:
‘‘All Marriages are Happy. It’s the life afterwards that creates troubles’’ (Anonymous)
Page 1 of 19
From The Desk Of
Noman Khan
smartonecool@yahoo.com

GlaxoSmithKline

A merger or acquisition happens when two or more companies join together,
often to Share costs, increase efficiency or gain market power. Mergers and
acquisitions often Referred to as M&A is also a tool for expanding ones business or get
around d different laws or regulations such as tax laws or monopoly regulations
(Ross, Westerfield & Jaffe, 2002). The mergers and acquisition (M&A) wave has
become the most debatable issues for investors particularly the regulators and
academics. The purpose of this course work is to find the rational for merger in
term of management incentives, post merger value creation and industry position
of the new entity e.g.
Merger between GlaxoWellcome and SmithKline Beecham.

Introduction:
GlaxoSmithKline is a UK based second largest pharmaceutical & healthcare
company in the world Headquartered in the UK and having listing on both New
York stock Exchange and London stock exchange.GSK is one of the industry
leaders, with an estimated seven percent of the world's pharmaceutical market;
GSK is the only pharmaceutical company researching both medicines and vaccines
for the World Health Organization’s three priority diseases HIV/AIDS, tuberculosis
and malaria.
GSK employs over 100,000 people, has more than 80 manufacturing sites
in 37 countries, and makes almost four billion packs of medicines and
healthcare products Each year. GSK spends £8 million (US$14 million) on research
and dev elopement each day – that’s around £300,000 (US$562,000) every hour
(GlaxoSmithKline, 2008).
Moreover in 2007 the turnover decreased from 23.2 % in 2006 to 22.7 %
a very challenging year for the company as GSK unexpectedly faced a severe
decline in Sales of Avandia, the second biggest product (GlaxoSmithKline, 2007).

Glaxo Wellcome:
Glaxo originates in New Zealand, where it was founded in 1873 by
Joseph Nathan. Glaxo already knows the merger game as before Glaxo welcome
was created in 1995 When Glaxo took over Wellcome for £9bn, in what was then the
biggest merger in UK
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GlaxoSmithKline

Corporate history:
Wellcome Foundation was financing medical research and was established in
1936, welcome owned a 40 % stake in Zantac, Glaxo struggled to find a
replacement for its blockbuster, whose patent has expired in the US, and for
Zovirax , Wellcome's anti-Herpes drug which has alread y become available without
a prescription. (BBC News, 2000). However before this welcome has rejected this $14
billion unsolicited takeover Offer (Stevenson, 1995).

Beecham (pharmaceutical company):
Beecham is a British pharmaceutical company. It was once a component of
the FTSE 100 Index. Beecham, after having merged with SmithKline Beckman,
merged with GlaxoWellcome to become GlaxoSmithKline (GSK).

SmithKline Beecham:
The mergers wave in the pharmaceutical industry started Late in the
decade of 1980 When SmithKline Beckman and Beecham merged. SmithKline
Beckman itself was the result of the 1982 merger of SmithKline (originally
Smith, Kline & Fren ch) and Beckman Instruments (Hand, 2000). Authors like
Baumanetal. (1997) categorize this merger as ‘Merger of equal’ because both
companies had equal capitalization of £3.5 billion.
SmithKline was unable to restore the income from its core drug, Tagamet, but
had an Aggressive sales force in the US. Beecham, a consumer goods Compan y, got
success in its early research attempt on antibiotics, but had no competencies to
become a Major pharmaceutical player. Their merger resulted in an or ganization with
a International marketing presence. Glaxo’s acquisition of Wellcome produced only
Short-term savings but no long-term growth.

The Consolidation:
In Januar y 2000, Glaxo Wellcome and SmithKline Beecham announced
their $76bn proposed merger and shareholders approved by 99 percent majority of
shareholders, which was expected to give the combined company a global
market share of 7.3 percent and an R&D budget of $4bn. Sir Richard Sykes
became the non-executive chairman, while Jean Paul Garnier became the CEO
of the GlaxoSmithKline under The new corporate governance structure. Theoretically
it was a horizontal merger. (See Appendix).
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GlaxoSmithKline

Why they merged?
In the first sentence of their famous book on merger Baumanetal. (1997)
stated that ‘‘when individuals seek personal change in pursuit of a high er goal, it
o ften means they must change a particular mindset, learn from others about
how they succeeded, Or acquire some new skills’’. Although Hambrecht argued that
although M&A activities occur in waves, but M&A activities are as a result of the
economic Environment. Thus it seems that GSK merger was part of the
pharmaceutical merger wave, but keeping in view (Economic environment) future
prospects and growing market potential pharmaceutical firms started looking for
partners, because the growing trend in the industry could affect their future cost.
R&D investment was rising with increasing proportion to sales from $20 billions
in 1990s to $35 billion in 1999.similarly huge capital expenditures like R&D especially
in Genetic medicine has along and uncertain payback and firm believed that only large
Size firm can do so. Another reason was patent expiration as patent expiry can reduce
innovator sale up to 80 percent, hence it was argued that merging research
laboratories and product pipelines would result into added knowledge from which
Potential blockbuster drug could emerge (Heracleous and Murray 2001).
CEOs of both companies declared that merger will improve the two groups’ ability to
generate sustainable long-term growth and is expected to enhance shareholder
value In an increasingly competitive environment. They also added that the deal will
also Result into a substantial operational cost savings (GlaxoSmithKline, 2000).
Similarly Drug companies also needed marketing muscle to sell their medicines.

Terms and Conditions of the Merger:
Copelandetal (2004) stated that the mode of payment for the target company
shares May be either cash, stock or hybrid securities, however Martin (1996) found
that firm with higher growth opportunities prefer stock as a mode of acquisition.
Keeping in view the underlying growth, GlaxoSmithKline plc acquired the whole
of the issued share capital of Glaxo Wellcome plc and SmithKline Beecham
plc in exchange for Shares in GlaxoSmithKline plc. Under this arrangement
shareholders of GlaxoWelcome plc and SmithKline Beecham plc received
shares in GlaxoSmithKline plc

As follows:
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Noman Khan

GlaxoSmithKline

For each Glaxo Wellcome share – 1 GlaxoSmithKline share
For each SmithKline Beecham share- 0.4552 GlaxoSmithKline Shares
(See appendix For detail).
However GlaxoSmithKline plc issued 6,222,462,894 ordinary shares of 25p
each at Par on the merger date to acquire 3,653,435,656 ordinary shares of 25p each
of GlaxoWelcome plc and 5,643,732,950 ordinary shares of 6.25p each of
SmithKline Beecham plc. The nominal value of the shares issued was £1,556
million and the Market value of the shares at that date was £119 billion.
(GlaxoSmithKline, 2000).

Methodology:
NPV, the simplest method of valuation is used. Under the NPV approach the
present Value of both firms is calculated individually before merger and it is compared
with the present value of combined entity after merger. If the gain is positive the
economic Justification for merger exist (Myers et al, 2006)
GAIN = PVGSK - (PVGW – PVSK)
PVGSK = 85,000,000,000/ (1.05)3 = £66,599,701,000
GSK market capitalization for the year of 2003 is £85 billion.
(GlaxoSmithKline,2003)
PVGW = Glaxo Wellcome Share price month before merger (Quoted Price) * Number
Of Glaxo Wellcome’s shares on December 27, 2000
= 17.5 * 3,653,435,656
= £63,935,123,980
PVSK = SmithKline Share Price month before merger (Quoted Price) * Number
of
SmithKline’ shares on December 27, 2000
= 7.9 * 5,643,732,950

Name of Company

New name of the

Date of

Paidup

Ratio

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Noman Khan

GlaxoSmithKline

company / merged with
Smith, Kline & French Glaxo Wellcome Pak. Ltd.
Wellcome Pakistan

Glaxo Wellcome Pak

Merger
27/11/2002

Capital
45.000

[1:1]

10-Oct 1996 335.501 [1:0.984]

Mission Statement GSK at a Glance:
Our mission is to improve the quality of human life by enabling people to do
more, feel better and live longer.
We are a research-based pharmaceutical company.
We are committed to tackling the three "priority" diseases identified by the
World Health Organization: HIV/AIDS, tuberculosis and malaria.
Our business employs around 99,000 people in over 100 countries.
Around 12,800 people work in our research teams to discover new medicines.
We screen about 65 million compounds every year in our search for new
medicines.
Our vaccines are included in immunization campaigns in 182 countries
worldwide.
We delivered 1.4 billion vaccine doses in 2009, of which nearly 1 billion were
shipped for use in developing countries.
In November 2009, we launched ViiV Healthcare, a global specialist HIV
company established by GlaxoSmithKline and Pfizer to deliver advances in treatment
and care for people living with HIV.
In July 2009 we acquired Stiefel Laboratories, the world’s largest independent
dermatology company.
January 2008 marked the tenth anniversary of our programmed to help
eliminate lymphatic filariasis (elephantiasis). Since the start of this programmed we
have donated more than 1.4 billion albendazole tablets to countries affected by LF.
In 2007 we marked 15 years of the Positive Action programmed that helps
communities living with HIV/AIDS. Positive Action is today a programmed supported
by ViiV Healthcare.
In the developing world, we provide certain medicines at favored prices ensuring
that the poorest can still benefit from our treatments and vaccines.

Operations:
As the second largest pharmaceutical company in the world, based on net
income, the company had sales of £22.7 billion and made a profit of £7.8 billion in
2007.It employs over 90,000 people worldwide, according to their website (2009),
including over 40,000 in sales and marketing. Its global headquarters are GSK House in
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GlaxoSmithKline

Brentford, London, United Kingdom, with its United States headquarters based
in Research Triangle Park (RTP) in North Carolina and its consumer products
division based in the Pittsburgh suburb of Moon Township, Pennsylvania. The
research and development division has major headquarters in South East England,
Philadelphia and Research Triangle Park (RTP) in North Carolina.
The company's stock is listed on the London stock exchange and ADRs are
listed on the NYSE. The single largest market is in the United States (approximately
45% of revenue), although the company has a presence in almost 70 countries.

Milestone:
Our company has a rich history that goes back to the early eighteenth century.
Select the dates below to learn more about the people and events that made
GlaxoSmithKline.

1700-1799
1800-1849
1850-1899
1900-1949
1950-1999
2000+

•
•
•
•
•
•

1715
Plough Court pharmacy, the forerunner of Allen and Hanburys Ltd, is established in
London by Silvanus Bevan.

1830
John K Smith opens his first drugstore in Philadelphia. John's younger brother,
George, joins him in 1841 to form John K Smith & Co.

1842
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GlaxoSmithKline

Thomas Beecham launches the Beecham's Pills laxative business in England. The
laxative is to become widely successful.

1859
Beecham opens the world's first factory to be built solely for making medicines at St
Helens in England.

1865
Mahlon Kline joins Smith and Shoemaker - as John K Smith and Co had become as a bookkeeper.

1873
Joseph Nathan, who left the UK to seek new business opportunities 20 years before,
establishes a general trading company at Wellington in New Zealand - Joseph
Nathan and Co - the foundation for the Glaxo Company to be formed later.

1875
Mahlon Kline took on additional responsibilities as a salesman and added many new
and large accounts. He is rewarded when the company, Mahlon K Smith and
Company, is renamed Smith, Kline and Company.

1880
Burroughs Wellcome & Company is established in London by American
pharmacists Henry Wellcome and Silas Burroughs, four years after Joseph Nathan
opened a London office.

1884
Tabloid is registered as a Burroughs Wellcome and Company trademark to describe
its compressed tablets.

1885
Thomas Beecham's company acquires headquarters on the corner of Silver Street
and Water Street, St Helens, England. Two years later, the company's new factory in
St Helens becomes the first in the area to have electricity.

1891
Smith, Kline and Company acquires French, Richards and Company, providing a
greater portfolio of consumer brands.

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GlaxoSmithKline

1902
The Wellcome Tropical Research Laboratories open

1904
Nathan starts dried milk powder production in New Zealand, exporting to London.
Henry Wellcome hires Henry Dale, who is to discover and study, among other things,
histamine and how nerve impulses are transmitted.

1906
Glaxo is registered by Joseph Nathan and Co as a trademark for dried milk. A
Burroughs Wellcome subsidiary is created in New York.

1908
The Glaxo department of Joseph Nathan and Co opens in London and the first "
baby book" is published.

1910
The " Blue Line" is added to the Smith, Kline and French name, a range
including poison ivy lotion, iron tablets and lozenges .

1913
Production of Beecham's Pills laxative reaches one million a day.

1919
Alex C Maclean establishes Macleans Ltd, manufacturing own-name products for
chemists. Mahlon Kline begins the novel practice of sending pharmaceutical samples
through the mail to doctors across the US.

1924
The vitamin D preparation Ostelin becomes Glaxo's first pharmaceutical product. The
Wellcome Foundation Ltd is formed. The Beecham estate is purchased by Philip Hill,
who realised that the Beecham's Pills business could, through diversification, become
the basis of a major company.

1926
Beecham's Powders cold remedy is introduced.

1929
Smith, Kline and French Company are renamed Smith Kline and French
Laboratories and become more focused on research.
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GlaxoSmithKline

1930
Sydney Smith of Wellcome isolates the glycosides of Digitalis lanata, a variety of
foxglove. Lanoxin (digoxin) is used in the treatment of heart failure.

1935
Glaxo Laboratories is formed and new facilities are created at Greenford, near
London.

1936
Sir Henry Wellcome's will leaves sole ownership of The Wellcome Foundation Ltd to
a UK medical research charity, today called the Wellcome Trust. Sir Henry Dale of
Wellcome is awarded the Nobel Prize for Medicine for his work in the chemical
transmission of nerve impulses.

1938
Beecham acquires Macleans Ltd and Eno's Proprietaries Ltd. Macleans toothpaste
and Lucozade energy-replacement drink are added to Beecham's product line

1939
Beecham acquires County Perfumery Co Ltd, manufacturers of Brylcreem, a men's
hair application.

1943
Beecham Research Laboratories is formed with the mission to focus exclusively on
basic pharmaceutical research.

1945
Beecham Group Ltd is established, replacing Beecham Pills Ltd and Beecham
Estates Ltd - later known as Beecham Group plc - and incorporates Beecham
Research Laboratories.

1947
Glaxo Laboratories Ltd absorbs the Joseph Nathan Company and becomes the
parent company. Glaxo is listed on the London Stock Exchange. New Beecham
laboratories are established at Brockham Park in Surrey, England.

1948
Vitamin B12 is isolated by Glaxo scientists for the treatment of pernicious anemia.
Streptomycin for TB treatment is produced by Glaxo scientists. Polymixin antibacterials are developed by Wellcome. Smith Kline and French Laboratories
acquire a new site at 1530 Spring Garden Street, Philadelphia.

1949
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GlaxoSmithKline

Beecham Group Ltd acquires C L Bencard Ltd, a company specialising in allergy
vaccines. It is a first step towards ethical products for the Beecham Company.

1950
Thorazine (chlorpromazine), an anti-psychotic from Smith Kline and French, is
introduced. The product will revolutionise the treatment of mental illness during the
1950s and become the product of reference in the first generation of central nervous
system drugs.

1952
Smith Kline and French introduce the first time-released medicine, Dexedrine
(dextroamphetamine sulfate). It is marketed and used in a Spansule - a novel form of
drug delivery. Daraprim (pyrimethamine) anti-malarial is developed by Wellcome.

1953
Wellcome launches its antileukaemic drug Purinethol (mercaptopurine).

1958
Glaxo acquires Allen and Hanburys Ltd.

1959
The Wellcome Foundation acquires Cooper, McDougall and Robertson Ltd, an
animal health company founded in 1843.

1958-1959
Wellcome launches range of Actifed antihistamine products for head colds and
allergies.

1960
Smith Kline and French launches Contac, the cold remedy, using the Spansule to
release an initial major therapeutic dose, followed by numerous smaller doses, over 1012 hours. The company moves into the animal health business with the acquisition of
Norden Laboratories.

1963
Betnovate(betamethasone) becomes the first of Glaxo's range of steroid skin disease
treatments. In the mid-1960s, Smith Kline and French acquire RIT (Recherché ET
Industries Therapeutiques), a vaccines business.

1968
Septrin (co-trimoxazole) anti-bacterial from Wellcome is introduced.

1969
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GlaxoSmithKline

Glaxo launchesVentolin (salbutamol) for asthma developed at Ware and marketed
under the Allen and Hanburys name. Ceporex, Glaxo's first oral cephalosporin
antibiotic, is introduced. Smith Kline and French enter the clinical laboratories
business through the purchase of seven laboratories in the US and one in Canada.

1970
Burroughs Wellcome Inc moves its production facility from New York to Greenville,
North Carolina.

1971
Wellcome launches its rubella vaccine. Burroughs Wellcome Inc opens its research
site at Research Triangle Park, North Carolina.

1972
Scientists at Beecham Research Laboratories discover amoxicillin and
launch Amoxil, to become a widely-used antibiotic. Beecham Group plc is
unsuccessful in its bid for Glaxo Group Ltd - and Glaxo is unsuccessful in its attempt
to merge with UK chemists Boots. Inhaled steroid beclomethasone dipropionate is
launched by Glaxo as Becotide (beclomethasone dipropionate) for asthma, followed in
1975 by Beconase for rhinitis conditions.

1976
The H2 blockerTagamet (cimetidine) is introduced in the UK by the SmithKline
Corporation and in the US in the following year. The treatment will revolutionize peptic
ulcer therapy.

1978
Through the acquisition of Meyer Laboratories Inc, Glaxo's business in the US is
started, to become Glaxo Inc from 1980. The broad-spectrum inject able antibiotic
Zinacef (cefuroxime) is introduced by Glaxo.

1981
The anti-ulcer treatment Zantac (ranitidine) is launched by Glaxo and is to become the
world's top-selling medicine by 1986. Augmentin (amoxicillin / clavulanate potassium),
to combat a wide range of bacterial infections in children and adults, is launched by
Beecham. The antiviral Zovirax (aciclovir) is launched by Wellcome for herpes
infections

1982
SmithKline acquires Allergan, an eye and skincare business, and merges with
Beckman Instruments Inc, a company specialising in diagnostics and measurement
instruments and supplies. The company is renamed SmithKline Beckman. John Vane
of the Wellcome Research Laboratories is awarded the Nobel Prize, with two other
scientists, " for their discoveries concerning prostaglandins and related biologically
active substances. "
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GlaxoSmithKline

1983
Glaxo Inc moves to new facilities in Research Triangle Park and Zebulon, North
Carolina. The broad-spectrum injectable antibiotic Fortum (ceftazidime) is launched.
Wellcome launches Flolan (epoprostenol) for use in renal dialysis.

1986
Beecham acquires the US firm Norcliff Thayer, adding Tums antacid tablets and Oxy
skin care to its portfolio.

1987
The AIDS treatment Retrovir (zidovudine) is launched by Wellcome. Glaxo introduces
the oral antibiotic Zinnat (cefuroxime axetil).

1988
SmithKline Bioscience Laboratories acquires one of its largest competitors,
International Clinical Laboratories, Inc, increasing the company's size by half and
establishing SmithKline Bioscience Laboratories as the industry leader. The Nobel
Prize for medicine is awarded to George Hitchings and Gertrude Elion, of Burroughs
Wellcome Inc, and to Sir James Black, who had worked at the Wellcome Foundation
and Smith Kline and French Laboratories, "for their discoveries of important
principles for drug treatment."

1989
SmithKline Beckman and The Beecham Group plc merge to form SmithKline
Beecham plc. Engerix-B hepatitis B vaccine (recombinant), a genetically engineered
hepatitis B vaccine, is launched in the US and France.

1990
The synthetic lung surfactant Exosurf and the anti-epileptic drug Lamictal
(lamotrigine) are launched by Wellcome. Glaxo introduces longacting Serevent (salmeterol) for asthma, the inhaled
corticosteroid Flixotide (fluticasone propionate) and Zofran (ondansetron) anti-emetic
for cancer patients.

1991
Glaxo launches its novel treatment for migraine, Imigran
(sumatriptan), Lacipil (lacidipine) for high blood pressure, and Cutivate (fluticasone
propionate) in the US for skin diseases. SmithKline Beecham moves its global
headquarters to New Horizons Court at Brentford, England. SmithKline
Beecham's Seroxat/Paxil (paroxetine hydrochloride) is launched in the UK, its first
market.

1992

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GlaxoSmithKline

Mepron(atovaquone) for AIDS-related pneumonia is introduced by Burroughs
Wellcome in the US. SmithKline Beecham's Havrix hepatitis A vaccine, inactivated,
the world's first hepatitis A vaccine, is launched in six European markets.

1993
SmithKline Beecham and Human Genome Science negotiate a multi-million-dollar
research collaboration agreement for identifying and describing the functions of the
genes in the human body. Glaxo introduces Flixotide (fluticasone propionate) for
bronchial conditions.

1994
SmithKline Beecham purchases Diversified Pharmaceutical Services, Inc, a
pharmaceutical benefits manager. Sterling Health also is acquired, making SmithKline
Beecham the third-largest over-the-counter medicines company in the world and
number one in Europe and the international markets. With the intention of focusing on
human healthcare, SmithKline Beecham sells its animal health business.

1995
Glaxo and Wellcome merge to form Glaxo Wellcome. Glaxo Wellcome acquires
California-based Affymax, a leader in the field of combinatorial chemistry. The Queen
opens Glaxo Wellcome's Medicines Research Centre at Stevenage in
England. Valtrex (valaciclovir) is launched by Glaxo Wellcome as an anti-herpes
successor to Zovirax (acyclovir). SmithKline Beecham acquires Sterling Winthrop's
site in Upper Providence, Pennsylvania, to fulfil US R& D expansion needs.

1996
Community Partnership is established by SmithKline Beecham to focus philanthropy
on community-based healthcare. SmithKline Beecham Healthcare Services is formed
by combining the clinical laboratories, disease management and Diversified
Pharmaceutical Services businesses.

1997
SmithKline Beecham's research centre, New Frontiers Science Park, opens at
Harlow in England. SmithKline Beecham and Incyte Pharmaceuticals create a joint
venture - diaDexus - to discover and market novel molecular diagnostics based on the
use of genomics.

1998
SmithKline Beecham and the World Health Organization announce a collaboration to
eliminate lymphatic filariasis (elephantiasis) by the year 2020. The largest
pharmaceutical company in Poland is created with the acquisition of Polfa Poznan by
Glaxo Wellcome.

1999
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GlaxoSmithKline

The 30th anniversary of the launch of Ventolin (albuterol) is marked as respiratory
becomes Glaxo Wellcome's largest therapeutic area. Sharpening its focus on
pharmaceuticals and consumer healthcare, SmithKline Beecham divests SmithKline
Beecham Clinical Laboratories and Diversified Pharmaceutical Services. SmithKline
Beecham's Avandia (rosiglitazone maleate), for the treatment of type 2 diabetes, is
launched in the US.

2000
GlaxoSmithKline is formed through the merger of Glaxo Wellcome and SmithKline
Beecham.
Avandia passes one million retail prescriptions in the US.
GSK makes a ground-breaking pledge to provide three HIV/AIDS medicines to
developing country governments at significant price reductions.

2001
GSK moves to its new UK headquarters in Brentford, West London. GSK House
consists of four, five-storey buildings and a 16-storey tower block linked by an internal
fully-glazed 'street'. The building was designed with input from employees.
Twinrix, the first combination vaccine to prevent hepatitis A and B is approved by the
FDA.
GSK reorganizes its research and development efforts into Centres of Excellence for
Drug Development (CEDDs), small business units that emphasize flexibility, innovation
and therapeutic focus.
GSK launches Advair, an anti-asthma medicine, in the US and acquires
theSensodyne range of oral care products.
GSK launches the African Malaria Partnership to help combat a disease that kills more
than one million people every year.

2002
Avandiareaches 20 million prescriptions milestone in the US.
GSK donated the first 100 million albendazole tablets as part of its commitment to fight
lymphatic filariasis.
GSK marks the 15th anniversary of AZT, the first medicine used to treat HIV/AIDS.
GSK‘s Positive Action programmed celebrates its tenth anniversary.
By the end of 2002, GSK had secured 120 arrangements to supply preferentially-priced
HIV/AIDS medicines to 50 of the world‘s poorest countries.

2003
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GlaxoSmithKline

On 27 July 2003, 10 million people in Sri Lanka received free doses of GSKdonatedalbendazole to help prevent the transmission of lymphatic filariasis.
GSK launches Wellbutrin XL, an anti-depressant medicine, in the US.

2004
GSK ships 33 million tablets of preferentially-priced Combivir (HIV treatment) to
Africa.
GSK launches its Clinical Trial Register, an Internet site containing clinical trial data
that anyone can access. GSK is the first pharmaceutical company to offer this level of
transparency for its clinical trial data.

2005
GSK launches Rotarix, a vaccine against rotavirus, a major cause of vomiting and
diarrhoea in infants. The launch programmed of the product focuses on markets where
the need is highest.
GSK donates medicines and vaccines in response to the Asian Tsunami disaster of
December 2004 and devastation caused by Hurricane Katrina in the USA in August
2005.
GSK announces the FDA approval of Fluarix, an influenza virus vaccine.
GSK CEO JP Garnier meets US President Bush to discuss pandemic flu planning.
GSK is highlighted by Bill Gates of the Bill & Melinda Gates Foundation in
recognition of the company's commitment to R&D on malaria and other neglected
diseases.
GSK take steps to bolster it leadership position in pandemic flu preparedness by
investing in flu vaccine production facilities, the acquisition of vaccines production
facilities and the development of candidate pandemic flu vaccines.

2006
GSK produces over 10 million packs of its anti-flu treatment Relenza in one year.
To boost its consumer healthcare portfolio, GSK acquires CNS Inc., producers of
the Breathe Right nasal dilator strips and FiberChoice dietary fiber supplements.
By the end of 2006, 600 million treatments for lymphatic filariasis had been donated as
part of the company's commitment to eradicate this disease.
GSK wins New Business Award for efforts to end lymphatic filariasis.
Rotarix, the first vaccine against rotavirus is made available in Europe.

2007
In a busy year for acquisitions, GSK acquires Domantis, a leader in developing
antibody therapies, Praesis Pharmaceuticals, a biopharmaceuticals company and
Reliant Pharmaceuticals, a producer of cardiovascular medicines.
GSK launches alli, over-the-counter orlistat, for first FDA-approved treatment for
obesity in the US.
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GlaxoSmithKline

GSK gains US approval for Tykerb, a new treatment for advanced breast cancer.
Cervarix, GSK‘s cervical cancer vaccine approved in Europe.
GSK announces submission of combination vaccine Globorix to the European
Medicines Agency (EMEA) with the intention of providing the vaccine to Africa with no
commercial reward.
Andrew Witty named CEO Designate to replace JP Garnier in May 2008.
GSK obtains exclusive US OTC marketing rights to Mevacor (lovastatin) from Merck &
Co., Inc.
New R&D centre opened in China.

2008
GSK marks the ten year anniversary of its commitment to eliminate lymphatic filariasis.
New allergic rhinitis treatment Avamys approved in Europe.
GSK reduces prices for anti-retrovirals in the world's poorest countries.
FDA approves Rotarix, a vaccination against rotavirus.
FDA approves Treximet for the treatment of migraine.
Andrew Witty succeeds JP Garnier as Chief Executive Officer.
GSK acquires Sirtris Pharmaceuticals Inc, a world leader in sirtuin research and
development.
FDA approves Requip XL, an oral treatment for Parkinson‘s disease.
Cervarix, GSK's cervical cancer vaccine, wins tenden for UK national immunization
programme.
GSK sets out three new strategic priorities: grow a diversified global business; deliver
more products of value; simplify the operating model.
GSK acquires the leading dry mouth brand, Biotene.
GSK ceases providing corporate political contributions.

2009
Weight loss medicine alli launches in Europe.
Synflorix, GlaxoSmithKline‘s pneumococcal vaccine, receives European
authorization.
GSK‘s commitment to emerging markets is strengthened through agreements with
Aspen, Dr. Reddy‘s and UCB.
GSK becomes a leader in skincare with the acquisition of Stiefel.
As influenza A (H1N1) spreads across the world, GSK commits to tackling the
pandemic with its anti-retroviral and vaccine products.
GSK and Pfizer launch ViiV Healthcare, a new company focused on delivering
advances in treatment and care for HIV communities.
Agreement reached to launch Lucozade in China.
GSK‘s H1N1 Pandemrix vaccine receives European Commission Approval.
Cervarix approved in USA and Japan.
Page 17 of 19
From The Desk Of
Noman Khan

GlaxoSmithKline

World‘s largest malaria vaccine trial gets underway in seven African countries.
GSK signs agreement with the World Health Organization to donate 50 million doses
of pandemic H1N1 vaccine for distribution to developing countries.
GlaxoSmithKline announced as Tier 3 Sponsor as London 2012 anti-doping plans
confirmed.
As part of its commitment to greater transparency, GSK publishes speaking and
consulting fees paid to US physicians.

2010
GSK contributes $1.4 million of medicines to support victims of the Haiti earthquake.
GSK announces open innovation strategy to help deliver new and better medicines for
people living in the world‘s poorest countries. New collaborations will share intellectual
property for neglected tropical diseases such as malaria.
GSK announces the formation of a new standalone unit specializing in the development
and commercialization of medicines for rare diseases.
GSK joins global vaccine alliance to help prevent millions of children from contracting
pneumococcal disease in the world‘s poorest countries.
European approval granted for Duodart.

Market Data BY KSE(Karachi Stock Exchange):
GlaxoSmithKlineXD
Symbol:

GLAXO Open Rate:

93.87

Bid Volume:

49 Bid Price:

94.05

Ask Volume:

800 Ask Price:

94.45

High Rate:

98.09 Low Rate:

93.30

Current Rate:

94.45 Turnover:

5671

Price Change:
Outstanding Shares

0.58 Percent Change:
170671875 Market Capitalization:

0.62
16119958593.75

Page 18 of 19
From The Desk Of
Noman Khan

GlaxoSmithKline

Page 19 of 19
From The Desk Of
Noman Khan

GSK

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