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  1. 1. 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 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
  2. 2. 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 Page 2 of 19 From The Desk Of Noman Khan
  3. 3. 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). Page 3 of 19 From The Desk Of Noman Khan
  4. 4. 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: Page 4 of 19 From The Desk Of Noman Khan
  5. 5. 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 Page 5 of 19 From The Desk Of Noman Khan
  6. 6. 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 Page 6 of 19 From The Desk Of Noman Khan
  7. 7. 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 Page 7 of 19 From The Desk Of Noman Khan
  8. 8. 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. Page 8 of 19 From The Desk Of Noman Khan
  9. 9. 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. Page 9 of 19 From The Desk Of Noman Khan
  10. 10. 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 Page 10 of 19 From The Desk Of Noman Khan
  11. 11. 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 Page 11 of 19 From The Desk Of Noman Khan
  12. 12. 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. " Page 12 of 19 From The Desk Of Noman Khan
  13. 13. 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 Page 13 of 19 From The Desk Of Noman Khan
  14. 14. 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 Page 14 of 19 From The Desk Of Noman Khan
  15. 15. 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 Page 15 of 19 From The Desk Of Noman Khan
  16. 16. 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. Page 16 of 19 From The Desk Of Noman Khan
  17. 17. 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
  18. 18. 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
  19. 19. GlaxoSmithKline Page 19 of 19 From The Desk Of Noman Khan