GlaxoSmithKline
GlaxoSmithKline (GSK) is a pharmaceutical and healthcare company, one of the largest in the world. In 2002, the company had sales of £31.8 billion and made a profit of £6.5 billion. It employs around 100,000 people worldwide, including over 40,000 in sales and marketing. It is headquartered in London.The company is listed on the London and New York Stock Exchanges. It does most of its business in the United States, but has a presence in almost 70 countries. The company's CEO is Jean-Pierre Garnier (former COO of SmithKline Beecham) and the non-executive chairman is Sir Richard Sykes (former chairman of Glaxo Wellcome) and current rector of Imperial College.
GSK was formed in December 2000 by a merger between Glaxo Wellcome and SmithKline Beecham, both the product of mergers themselves, as recently as 1995 for Glaxo and Wellcome. GSK was actually incorporated in December 1999 as part of the lengthy merger process. As a result of the mergers, the company has certain minor businesses which are not strictly within its larger interests.
In 2002, pharmaceutical sales accounted for £18 billion of GSK's total sales. Sales are largely based around a small number of successful products, the SSRI Paxil accounted for £2.1 billion in sales alone.
Other key products include:
- Seretide (a bronchodilator, £1.6 billion)
- Augmentin (amoxicillin & clavulinic acid, an antibiotic, £1.2 billion)
- Wellbutrin (an anti-depressant, £882 million) and
- Avandia (rosiglitazone, a PPAR-gamma agonist, £809 million).
At their AGM on 19 May 2003, GSK shareholders rejected a motion regarding a £22 million pay and benefits package for Jean-Pierre Garnier. This is the first time such a rebellion by shareholders against a major British company has occurred, but is regarded as a possible turning point against other so-called "fat cat" deals within executive pay structures.
In June 2004 the company had court proceedings initiated against them on allegations of fraud. The allegation is that the company suppressed research that shows that Paxil/Seroxat is little more effective than a placebo and increases suicidal feelings in young people, side effects which have commonly been reported by users for some time.